New government policy: Will buy-to-let investors lose out?

Thrugelmir

chucky wrote: »

here's another question that sounds very interesting...

if you have a Ltd Co and that Ltd Co owns a property or a number of properties.
when you go to sell the properties why don't you sell the Ltd Co - that way the buyer doesn't pay Stamp Duty for the properties. therefore you can negotiate an increased return.

is that correct?

In selling the Company , you sell the share capital for a consideration. If this is above £1k then stamp duty of .5% is payable on the consideration by the purchaser.

The potential purchaser will also know it will cost you money to sell on the properties individually. So swings and roundabouts as to the actual return achieved.

Consult a tax accountant to ascertain best method of liquidating the Companies Assets and extracting the cash.

Vincenzo

chucky wrote: »

here's another question that sounds very interesting...

if you have a Ltd Co and that Ltd Co owns a property or a number of properties.
when you go to sell the properties why don't you sell the Ltd Co - that way the buyer doesn't pay Stamp Duty for the properties. therefore you can negotiate an increased return.

is that correct?

I believe stamp duty would be payable on the value of the equity (shares) purchased at 0.5%.

The market for your company of a portfolio of x random properties would be much smaller than if you sold each individually. Far from obtaining a higher price, I expect you would have to sell at a discount to the value you would have achieved had you sold them individually.

carolt

Ooh, can't belive so many esponses - posted the OP yesterday, went away and left it...

Glad the subject matter was of interest.

Doctor_Gloom

carolt wrote: »

Ooh, can't belive so many esponses - posted the OP yesterday, went away and left it...

Glad the subject matter was of interest.

Yes, it's been most illuminating. In the course of trying to wreck your thread Carol, chucky clumsily exposed himself as a fraud and a liar. A most spectacular own goal.

Harry_Powell

Doctor_Gloom wrote: »

Yes, it's been most illuminating. In the course of trying to wreck your thread Carol, chucky clumsily exposed himself as a fraud and a liar. A most spectacular own goal.

Every morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a Lion wakes up. It knows it must outrun the slowest Gazelle or it will starve to death. It doesn't matter whether you are a Lion or a Gazelle... when the sun comes up, you'd better be running.

Exocet

Harry_Powell wrote: »

Every morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed.

Doesn't it just have to run faster than the gazelle next to it? Not too sure what this has to do with BTL, but carry on.

Harry_Powell

Exocet wrote: »

Doesn't it just have to run faster than the gazelle next to it? Not too sure what this has to do with BTL, but carry on.

I doubt that a lion spends much time analysing the relative speed of the gazelles and chooses the slowest, ignoring a slightly faster one that could be closer. For safety's sake, it's better to be faster than the lion than to leave your fate in its hands.

I've quoted the African proverb in response to the accusation aimed at chucky, not at BTL. I'll let you figure it out but will help with a big, big clue. We're all gazelles (including chucky) and the lion is the Revenue.

LydiaJ

Harry_Powell wrote: »

I doubt that a lion spends much time analysing the relative speed of the gazelles and chooses the slowest, ignoring a slightly faster one that could be closer.

Actually, I think they do spend quite a lot of time watching prey and picking out the slowest, weakest and sickest. It's a much more efficient use of their resources than running after anything and everything, burning calories in the process.

leveller2911

Gorgeous_George wrote: »

And of course, and BTLer who was thinking of selling may decide to keep the property earning income longer rather than selling up with less profit to bank.

Personally, it makes no difference to me and I may still buy more property if the right ones come to the market.

GG

Or you could be a really nice chap and not buy.Thus leaving the said house/flat for that nice young couple ,moving out of their parents houses for the first time, madly in love and starting on the journey of life........:D

Or like you say just think of me,me,me, and sod the rest......;)

Harry_Powell

LydiaJ wrote: »

Actually, I think they do spend quite a lot of time watching prey and picking out the slowest, weakest and sickest. It's a much more efficient use of their resources than running after anything and everything, burning calories in the process.

Quite. It analyses which gazelles are slower than it is. QED.