11:19 AM, 29th March 2019, About 3 years ago
The Scottish equivalent to Stamp Duty “LBTT” is the same as in England and Wales. However, the 4% additional rate of LBTT in Scotland (1% higher than in England and Wales) does not apply when six or more connected transactions complete simultaneously. Such transactions also benefit from Multiple Dwelling Relief.
To illustrate this point, a sole owner landlord in Scotland who owns a rental property business comprising 20 properties worth £1,500,000 would only pay LBTT of £15,000 when transferring his property portfolio into a Limited company, whereas a landlord in England or Wales would pay three times more!
Just as partnerships in England and Wales benefit from advantageous SDLT relief upon incorporation of their business, there is also LBTT relief for property rental partnerships in Scotland. ‘Incorporation relief‘, which enables landlords to roll capital gains into shares in a company into which the whole of a property business is transferred, applies an an equal footing throughout the UK.
Landlord Tax Planning Consultancy is the core business activity of Property118 Limited (in association with Cotswold Barristers).Show Book a Tax Planning Consultation
There will never be an optimal ‘one-size-fits-all’ business structure for tax purposes. The presentation below provides a useful overview of some of the options you might like to discuss with us.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|