2nd Property Stamp Duty

JKHT · 27 February 2018 at 4:41PM

I have just completed the purchase of my 2nd property, I have purchased this property with my parter but I own the first one myself. I am now having to pay 3% stamp duty, I have had a look and the only way I can avoid/claim this money back is by selling the first property and claiming the 3% stamp duty back.

Is there a certain type of percentage or amount you can claim back? If so does my 3% for a second property fall under this category.

I just want to make sure what I’ve read is correct and I’m not going to get a shock when I’m told I can’t claim it back after I’ve sold the property.

I am planning to start a limited company with a friend and purchase my first property, will this have any effect?

Any advice is much appreciated!

Jack

SDLT_Geek · 27 February 2018 at 5:44PM

A purchase by a limited company of a residential property will almost certainly itself be subject to the 3% SDLT surcharge, even if it is the only property the company owns. The transfer is likely to be treated as being made at market value.

Doozergirl · 27 February 2018 at 5:44PM

You'd probably get the 3% back personally but your limited company would have to pay the 3% out on your property instead as it cannot possibly be a main residence for a limited company! And you'd pay the 3% out again before you got it back!