My journey. Self employed and want a new final home. It's complicated.

AdrianC

ACG wrote: »

Im not disputing what Adrian says but i would double check...

Companies and partnerships

Companies have to pay the higher rates when they buy any residential properties that are over £40,000 and aren’t subject to a lease of more than 21 years.
You’ll have to pay the higher rates if your partnership already owns a residential property and you purchase another residential property for your partnership.
You won’t have to pay the higher rates if you buy a property for yourself and your only additional properties are used for your partnership’s trade.

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Personally I think it would be due, but in all honesty I do not know the answer.

The OP's talking about a company, rather than a partnership. Different types of legal entity.

ACG

I understand it is a different entity (I have my own ltd co), but the bit I have copied and pasted does seem to differentiate between sole traders and limited companies.

This is not exactly relevant, but if the principle is the same then again it backs up that stamp duty could be due:

Trusts

You’ll be treated as owning a property if you receive all the income from it and the proceeds from its sale even if you’re not the legal owner.

ACG

Actually, I have found the answer I think, Adrian appears to be correct.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf

Q26.
I have share
s in a limited company which owns a property for rental to tenants. I
am purchasing another property which I will own direct. I do not own any other
residential property. Will I have to pay the higher rates?

A26.
No, shareholdings in a company that owns residential property will not be counted
when determining if an individual is purchasing an additional residential property,
although the company may be liable to the higher rates if it purchases residential
proper
ty. As this is your first purchase of a residential property the higher rates will
not apply.

Still, just get your solicitor to give you the green light. That is what you are paying them for.

Prosperous1

Credit reports ordered. That's the first step ticked..

Prosperous1

Viewed both credit reports. Exoerian no surprises or skeletons in the closet.
Equifax however shows a default from a pay day loan in 2013 passed to a debt collector. The OLD company is no longer trading so I need to contact the dcl. I've never had an assignment of debt and as far as I knew all debts were paid. Hopefully just a small obstacle to overcome.. that said. Any and all adverse drops off in Sep 2019.. wondering if I should wait til then and have even more deposit...

Mrs36

I would wait O/P, then you'd be in a stronger position with no adverse, bigger deposit and more years of accounts too. Win win all round at that point.

Prosperous1

Leaning to this...
Gives me time to offload one of the rentals too. Tbh 2 and a half years flies by in reality... and I'm not going to jump until we find a property that ticks all the boxes anyway...

Prosperous1

Checked wifes file on noddle. Default from 2014 when we had identity theft. This is for EE for £1600. We had loads removed with vodafone orange and opthers and paydayloans that were fraudulently taken out. Need to try and find the action fraud paperwork to have this removed. Good job Im sorting it this far in advance would hate to finding this out at mortgage app stage..

p00hsticks

ACG wrote: »

Im not disputing what Adrian says but i would double check...

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Personally I think it would be due, but in all honesty I do not know the answer.

The OP says that they'll be selling their main home to buy the new one. If they do this then regardless of how many existing BTLs they have or whether the BTL owned by the limited company counts or not, there should be no additional SDLT due, as there is an exemption for the case where you are replacing your main residence.