Avoiding SDLT Surcharge - buy through Ltd?

[Bacchus]

Now, if I then sell my main residence and buy another house as my primary residence, I'll be paying the surcharge on that too assuming I hold onto my flat.

The surcharge doesn't apply to your primary residence (unless you buy a new primary residence before disposing of the original, and is refundable then as long as you dispose of the original with three years).

[Pip in a Poke]

The surcharge doesn't apply to your primary residence (unless you buy a new primary residence before disposing of the original, and is refundable then as long as you dispose of the original with three years).

I thought it did. Anyhow, how is my primary residence determined? I'm not doing BTL & will have 2 resi mortgages so which is my primary residence?

[zeitghost]

The frequently heard downside is the capital gains tax the Ltd would owe when you came to sell the property.

I do wonder how that would be handled if the property was worth less than purchase price, if we get the house price return to 'normal' phase that is long overdue. Capital loss written off against future tax on profit or something like that?

I'd ask my accountant but you lot are cheaper.

Been waiting for that since 2001.

[LondonPM1]

I thought it did. Anyhow, how is my primary residence determined? I'm not doing BTL & will have 2 resi mortgages so which is my primary residence?

This is not easy to answer - It depends on many things

Some examples : Where are you registered to vote - Where do your credit card bills get sent.

If you manage to have some statements going to one vs the other then its normally the first you buy

If you want to change your reisdence (ie flip) you need to notify HMRC

[northernladuk]

I thought it did. Anyhow, how is my primary residence determined? I'm not doing BTL & will have 2 resi mortgages so which is my primary residence?

Surely you'll need consent to let if you have 2 residential mortgages else you'll be in breach if the mortgage conditions. The one that doesn't have the consent is your primary.

[Mordac]

You won't be "avoiding" the SDLT surcharge - companies have to pay the full amount, with a few exceptions for charities, and certain public bodies, such as schools and hospitals. If you have a "special need" you could try your luck with HMRC, but I doubt you'll get very far.

[Pip in a Poke]

You won't be "avoiding" the SDLT surcharge - companies have to pay the full amount, with a few exceptions for charities, and certain public bodies, such as schools and hospitals. If you have a "special need" you could try your luck with HMRC, but I doubt you'll get very far.

I njust want to avoid the situation where I have to pay it if I purchase a new main residence.

According to the received wisdom on this forum, I don't have to worry about this as the surcharge doesn't apply to main residences. But, yes, I know I'll pay it on the apartment but I won't be spending more than £200-250k so I can suck that up

[tomtomagain]

I just want to avoid the situation where I have to pay it if I purchase a new main residence.

Funnily enough, HMRC doesn't want you to avoid it. There are no gaping loop-holes to allow you to do so.

... and if there were, everyone would be doing it and they'd soon be closed off.

[Pip in a Poke]

Funnily enough, HMRC doesn't want you to avoid it. There are no gaping loop-holes to allow you to do so.

... and if there were, everyone would be doing it and they'd soon be closed off.

Look I KNOW I HAVE TO PAY IT!!!
I just want to know if I have to pay the surcharge if I buy a new primary residence whilst owning a flat that I am going to use as a crash pad for work.

[stek]

You think I can be bothered to look up the alt code for a grave?

U just press 'a' and hold and all the accented versions appear onscreen with little numbers on the top so u either click or press the number over the one you want.

Easy. Only works on a Mac though....