Incorporating into our Ltd co and Higher Stamp Duty refund?

Incorporating into our Ltd co and Higher Stamp Duty refund?

13:22 PM, 27th July 2020, About 4 years ago 2

Text Size

Hi, We are looking at incorporating our buy to let property (purchased in 2016 as our primary residence and has been let out since 2019) into our Ltd company (set up in March 2020).

The house we currently live in was purchased in Nov 2019 at a higher stamp duty and I was wondering if we would be able to claim the higher stamp duty back if we sold our buy to let property to our limited company.

Please note both me and my husband are named Directors of our Ltd company and both properties are under both our names.

Thank you in advance

Share This Article


Neil Patterson

13:30 PM, 27th July 2020, About 4 years ago

Hi Preetha,
You need to think of yourselves personally and the Ltd co as separate identities.

Please check this with HMRC and your solicitor, but under the rules it looks like you have replaced a main residence with another and are looking to sell within 3 years so you theoretically would get the additional stamp duty refund.

However, it is a zero-sum gain as you would be paying the Stamp Duty Surcharge on the company purchase.

Mervin SX

19:23 PM, 2nd August 2020, About 4 years ago


Just adding to what Neil has already said:

- You can sell your old residence to your limited company. You will need to get a LTD company BTL mortgage (if you have a mortgage) and pay stamp duty with 3% surcharge (only 3% now until 31st March 2021 if price below £500K).

- Once this deal has gone through, you can then clam back your current home's stamp duty surcharge back, which you paid in November 2019. Not all of it, just the surcharge element.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now