Avoiding SDLT Surcharge - buy through Ltd?

[Pip in a Poke]

I know there are existing variants of this question but none of these threads address my unique situation.

I already own my own home which will remain my primary residence. If I go and buy a small flat cum pied a terre, I'll be charged the SDLT surcharge. 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.

A lot of money, in other words...


So, my question is - why not buy the pied a terre through my Ltd?

Since another entity owns the property then presumably I don't pay the surcharge because I technically still only own 1 property?

The only slight nagging doubt is that I'll be bunging a load of my own personal money to fund the deposit. If I sold up, would I get this money back or would it be deemed as an asset of the company & I'd have to pay tax on it to get it back?

[northernladuk]

Why is that unique to you? Won't the same situation affect absolutely everyone that has a main residence and a BTL?

[northernladyuk]

Have you asked your accountant?

FTFY

[Pip in a Poke]

Why is that unique to you? Won't the same situation affect absolutely everyone that has a main residence and a BTL?

Mine won't be a BTL - I'll be using it as a crash pad for work. Just wondering if anyone else has done this via their Ltd?

[northernladyuk]

I know there are existing variants of this question but none of these threads addresses my unique situation.

I already own my own home which will remain my primary residence. If I go and buy a small flat cum pied-à-terre, I'll be charged the SDLT surcharge. 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.

A lot of money, in other words...


So, my question is - why not buy the pied-à-terre through my Ltd?

Since another entity owns the property then presumably I don't pay the surcharge because I technically still only own 1 property?

The only slight nagging doubt is that I'll be bunging a load of my own personal money to fund the deposit. If I sold up, would I get this money back or would it be deemed as an asset of the company & I'd have to pay tax on it to get it back?

Corrections in bold.

4/10

Sloppy work. See me.

[Pip in a Poke]

Corrections in bold.

4/10

Sloppy work. See me.

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

[eek]

Ask your accountant as your knowledge is wrong and your solution even worse....

[northernladyuk]

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

But you should have a 'hyphen' key on your keyboard. And there really is no excuse for incorrect subject verb agreement, except of course the parlous state of the education system, over many many decades, it would appear.

[northernladuk]

But you should have a 'hyphen' key on your keyboard. And there really is no excuse for incorrect subject verb agreement, except of course the parlous state of the education system, over many many decades, it would appear.

The fact he has a keyboard at all makes me glum.

[Hobosapien]

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.