Purchasing a BTL as a Limited Company to save on Stamp Duty

Spartan_Saver

Hi,

I am looking into buying a property as BTL. I currently own 1 house which is being rented and another one jointly with my GF. With the joint property I had to pay the additional 3% of stamp duty as it is classified as an additional property.

I am now in a position to buy an additional property which would be strictly done as a BTL. However I have been speaking with two different accountants to mitigate the additional stamp duty implications. One of them is adamant that if the property is purchased as a Limited Company, it would be excempt from the additional stamp duty. The other accountant says this is not possible.

Does anyone have any experience or advice with regards to this? Is it possible to mitigate the cost of additional stamp duty legally through a limited company ?

Any advice will be really appreciated - Thank You

buglawton

I think to operate a proper tax dodge it helps if you a a senior member of the Conservative party:
https://www.theguardian.com/politics/2018/apr/18/jeremy-hunt-investigated-breach-money-laundering-rules-luxury-flats
That's about when JH bought a batch of 7 BTLs from a Tory party donor.

But seriously, apparently to avoid stamp duty on additional BTLs you have to buy more than 6. Legislation by the Tories for the Tories!

cashbackproblems

Yep it can be owned through a company and its what many LL now do, but you have to work out the costs of setting one up and reporting every year etc against the cost of saving in stamp duty. This forum probably isnt the best place to post as people tend to be cautious 20p voucher savers

davidmcn

Companies pay the additional rate, even for their first property, so the first accountant is talking rubbish.

Pixie5740

Spartan_Saver wrote: »

Hi,

I am looking into buying a property as BTL. I currently own 1 house which is being rented and another one jointly with my GF. With the joint property I had to pay the additional 3% of stamp duty as it is classified as an additional property.

I am now in a position to buy an additional property which would be strictly done as a BTL. However I have been speaking with two different accountants to mitigate the additional stamp duty implications. One of them is adamant that if the property is purchased as a Limited Company, it would be excempt from the additional stamp duty. The other accountant says this is not possible.

Does anyone have any experience or advice with regards to this? Is it possible to mitigate the cost of additional stamp duty legally through a limited company ?

Any advice will be really appreciated - Thank You

Why not go wild and read the Higher Rate of SDLT Manual from HMRC which has been linked to in the million and one other threads about the higher rate of SDLT, many of them about trying to circumvent the higher rate by setting up a limited company.

Doozergirl

Thebaccountant is talking rubbish.

Been there, done it, the 3% applies.

buglawton

davidmcn wrote: »

Companies pay the additional rate, even for their first property, so the first accountant is talking rubbish.

Erm... see post #2.

(I'm not an accountant)

Doozergirl

buglawton wrote: »

Erm... see post #2.

(I'm not an accountant)

Your post? I'm missing something. It doesn't even mention Stamp Duty, does it?

I don't even think that thing about 6 properties is true. It was mooted but not passed, iianm.