16:19 PM, 2nd February 2022, About 4 months ago 4
Hello all, To explain my situation, I am a UK citizen, but currently living in Hong Kong.
I already have a number of properties in my own name (bought before I left the UK) and am now looking to establish a company with my cousin, who is based in the UK.
I have the money to invest, and he works in the building trade, so there are obvious synergies with this approach.
My concern is that I believe I would be subject to an additional 2% stamp duty surcharge as an overseas buyer, and that this 2% would be applied across the full transaction value (even if my cousin owns 50% of a property).
Whilst I accept that if I purchase a property, I will be subject to the additional stamp duty – it feels unfair of me to expect my cousin to pay the additional stamp duty on his half because of my residence. By the same token, I don’t particularly want to pay a 2% surcharge across the full property value if I am only going to own 50% (as this effectively becomes a 4% surcharge on my half).
I wanted to ask if anyone is aware of anyway of structuring a company, or any other strategies for overcoming this hurdle? My research to date seems to suggest this won’t be possible, as I believe even limited companies are subject to the additional charge if one of the owners of the company is an overseas buyer.
Any advice would be much appreciated!
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