Reply to: Avoiding SDLT Surcharge - buy through Ltd?

[northernladyuk]

Ask Brillo all tax avoidance and marriage questions, he is an expert.

Do the opposite of what he says...

FTFY

[AtW]

Ask Brillo all tax avoidance questions, he is an expert.

Do the opposite of what he says...

[Pip in a Poke]

<b>Was he a foreigner</b>

No he was not - What does that have to do with what we are talking about

Pardon?

[LondonPM1]

Definition of furriner. :foreigner 2 —used to represent a dialect pronunc.

What are you talking about?

<b>Was he a foreigner</b>

No he was not - What does that have to do with what we are talking about

[LondonPM1]

Was he,err, a furriner?

Definition of furriner. :foreigner 2 —used to represent a dialect pronunc.

What are you talking about?

[Pip in a Poke]

Count yourself very lucky - I know someone who bought a second home in London on a purchase price of 650K and ended up paying 45K stamp duty!!! And in cash

Was he,err, a furriner?

[LondonPM1]

I bought a second property for this reason - Longish contract away from home and sick of handing cash over to landlords for staying in their poxy flats. So we bought a place in Leith, close to Edinburgh. We had to stump up the second property tax - £5400 in total for stamp duty and second property tax. If we sell up and revert back to a single property within 18 months of the purchase , we'll get the second property part back. I asked my accountant about buying it through the business and he thought it was a bad idea due to capital gains.

We got our mortgage through Yorkshire bank/Clydesdale and I couldn't fault them - very contractor friendly.

Count yourself very lucky - I know someone who bought a second home in London on a purchase price of 650K and ended up paying 45K stamp duty!!! And in cash

[bobspud]

There have been a number of times when I thought setting up a contractor scheme was an easy road to retirement. Then I remembered that I have to sleep at night so couldn't implement a scheme to profit from others...

I am starting to think that normal scruples do not need to apply to this matter as so many of the people we see here are so very deluded and completely without moral compass. Taking their money and leaving them awaiting bankruptcy is the only way to help them.

By now the contractor market should be so tulip hot tight on evasion vs avoidance these scheme should be no where near us but as recent as this year I met someone that was joining a scheme coz its easier than running a limited.

[eek]

There is a fantastic story in the Telegraph about some poor deluded idiots that bought into a scheme to reduce their stamp duty. HMRC have come to see them with a bill for 91k when the original bill was about 30k and guess what? The scheme seller has gone in to liquidation and fled. Of course they are victims and terribly upset that their little wheeze cost them 16k and did **** all.

If you are indeed that type of idiot then there are lots of bastards out there that will take your money, lie to you about the schemes effectiveness then flee over the hill when the tulip hits the fan.

This really is the ultimate self selecting greedy idiot plan. In fact judging by the number of people that like 90% take home umbrella firms and stamp duty schemes why the hell would anyone waste their time being a contractor when and afternoons work can net 16k in fees...

There have been a number of times when I thought setting up a contractor scheme was an easy road to retirement. Then I remembered that I have to sleep at night so couldn't implement a scheme to profit from others...

[chopper]

Indeed. It would be simpler if they didn't call it a 3% surcharge, but instead increased all SDLT rates by 3, and instead had a primary residence discount.

However, a strong and stable Tory government would do the first bit, but forget about the second bit.

[Pip in a Poke]

Hola Pip

Please accept my apologies on behalf of the contractor community for the 3 pages of drivel that precede this post.

You can't avoid additional SLDT if you already own a property anywhere in world - or rather any country that complies with the Empire and it's obviously flawed plans to control everyone through increasingly convoluted taxation policy rather than positive solutions that benefit the populace.

Buying through a Limited Company will not avoid additional SLDT either. The 'entity' is not seen to be different to you in this circumstance. Remember, this is HMRC and they make up the rules any way they see fit.

Oi Chimpo

Yes, a lot of drivel and the usual accusations of tax avoidance flying around (notably from that obnoxious DP sockie with the Asterix avatar).

I should have just gone to Zoopla where there is a very succinct answer to my question:

If the home you are buying replaces your main residence, you will not be liable for the 3% surcharge, even if you own an additional property

All I was worried about was paying the surcharge on my primary residence should I have moved house whilst also owning a second home.

[bobspud]

There is a fantastic story in the Telegraph about some poor deluded idiots that bought into a scheme to reduce their stamp duty. HMRC have come to see them with a bill for 91k when the original bill was about 30k and guess what? The scheme seller has gone in to liquidation and fled. Of course they are victims and terribly upset that their little wheeze cost them 16k and did **** all.

If you are indeed that type of idiot then there are lots of bastards out there that will take your money, lie to you about the schemes effectiveness then flee over the hill when the tulip hits the fan.

This really is the ultimate self selecting greedy idiot plan. In fact judging by the number of people that like 90% take home umbrella firms and stamp duty schemes why the hell would anyone waste their time being a contractor when and afternoons work can net 16k in fees...

[MarillionFan]

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?

Nah. They saw through that. Buying it through a LTD still incurs the 3%.

Unlucky.

[ChimpMaster]

Hola Pip

Please accept my apologies on behalf of the contractor community for the 3 pages of drivel that precede this post.

You can't avoid additional SLDT if you already own a property anywhere in world - or rather any country that complies with the Empire and it's obviously flawed plans to control everyone through increasingly convoluted taxation policy rather than positive solutions that benefit the populace.

Buying through a Limited Company will not avoid additional SLDT either. The 'entity' is not seen to be different to you in this circumstance. Remember, this is HMRC and they make up the rules any way they see fit.

[Pip in a Poke]

Yes. You have to pay it.

The surcharge was deliberately introduced to target people who are wealthy enough to purchase a second residence.

It is target specifically at you. Someone who wants to own two properties for their own private use.

They've even explained their thinking as to why it's fair here.

Middle class. FTFY