17:37 PM, 26th April 2017, About 7 years ago 2
My partner (not married) owns a bungalow (principle residence).
She has obtained planning permission for the demolition of the bungalow and to build 3 houses on the plot (1 x 4bed detached and a pair of 2 bed semi’s).
My company (incorporated about a year ago to build and retain rental properties) has agreed to purchase this from her at market value £600,000. Original purchase price 2 years ago was £420,000.
£180,000 principle residency capital gain 0% tax
With recent changes my company will have to pay the extra 3% stamp duty on the purchase along with the normal stamp duty.
I have been receiving the property118 news letters regarding landlords incorporating etc.
Is there a way that my company may be able to obtain the bungalow in a similar way that a landlord can incorporate without having to pay the addition stamp duty? For example if my partner was made a director shareholder?
The plan is to sell the detached unit and retain the semi’s as rentals.