LTD Company selling house

[BA to the Stars]

You must spread some Reputation around before giving it to TestMangler again.

[Nixon Williams]

Put an offer in on a house to find that it is in the name of a LTD Company. I don't know the reasons for this, it has been renovated but by the ex owners son after inheriting it. Could be a couple of reasons but that is by the by.

These days, many properties are owned by a limited company, provided you are only buying the property and not the company, there is really no difference for you, the buyer, whether the vendor is a private person, limited company etc.

Stamp duty is payable upto 7% (on properties over £2million) and I would avoid these schemes that use corporate structures to avoid stamp duty, the time for these is now limited.

There is nothing you can offer to reduce their tax bill, so you need to treat it as any other house buying transaction.

[Maslins]

Ummm, one thought is what else is in the company?

Used to be a bit of a stamp duty dodge, where for expensive houses, nobody actually bought or sold the house itself, they bought shares in the Ltd Co which owned it (and had no other purpose). Reason being stamp duty for expensive houses can be 4%, whereas for shares is 1/2%. This was only really worthwhile for mansions in Chelsea etc...and I think there was recently some anti avoidance legislation to clamp down on it.

Other than that, I don't think it makes much difference. The fact it's owned by a Ltd doesn't in any way make it a business property, that'd be determined by whether it had beds/sofas or desks/machinery.

The seller may well have CT to pay (if selling for more than they bought it for)...but I can't see much you can do about that. You could offer them a lower price to reduce their tax bill...but they'll only fall for that if they also fall for their accountant saying "How about I double my fee to reduce your tax bill" (ie they'd still lose out by 80% of any drop in offer). You say you don't want to do anything dodgy, so that rules out offering one price on paper, with an extra £Xk cash in a paper bag...

[Alias]

given on behalf on TM

[TestMangler]

And I very much appreciate your guidance and advice...

.... now **** off..

You must spread some Reputation around before giving it to northernladuk again.

[northernladuk]

Cor thanks.

Well, before answering, I feel it is important to ask these questions to gauge if you can be bothered helping yourself before seeking the assistance of others

And I very much appreciate your guidance and advice...

.... now **** off..

[TestMangler]

You, sir, are a comedy genius!!

Cor thanks.

Well, before answering, I feel it is important to ask these questions to gauge if you can be bothered helping yourself before seeking the assistance of others

[northernladuk]

Have you tried doing a search or reading the newbie guides ?

You, sir, are a comedy genius!!

[TestMangler]

Have you tried doing a search or reading the newbie guides ?

[northernladuk]

Put an offer in on a house to find that it is in the name of a LTD Company. I don't know the reasons for this, it has been renovated but by the ex owners son after inheriting it. Could be a couple of reasons but that is by the by.

Does this give me an opportunity to offer any kind of deal that would help with his tax situation allowing me to get a cut of his tax savings? We have had plenty of questions about buying a property through the LTD which I am aware isn't advised but seen nothing about about buying a company from a LTD. Are there any rules about buying a business property that might make it advantageous to involve my LTD? At this point I am assuming that it would be better to keep my own home away from the LTD but still willing to listen to ideas.

Am happy to deal with a bit of extra complexity of all parties agree but not looking to do anything that has any comeback on me or any kind of tax evasion even on his part.