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Will I pay stamp duty?
Jorayme
Posts: 2 Newbie
Hi all. I'm selling my home (the only property I own) to a company I'm creating so that I can rent it out in a tax efficient way. I live with my partner but haven't yet bought a share in his home. As this will be the first property the company buys, and as the only director I won't own a home, will the company have to pay any additional stamp duty?
Mamy thanks.
Mamy thanks.
0
Comments
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Yes, the company will pay stamp duty land tax based on the market value at transfer, at the higher rates. There are special rules for companies. Generally, if you only have one property, it’s probably not worth incorporating it.1
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Thanks. I was looking to do it as a first one, with others to come. I didn't know if, as I wouldn't own any other properties at that time, I'd have to pay the extra 3%. I'm also a higher rate tax payer so looking to save on tax via the company.0
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Your headline is "will I pay stamp duty?". and your text says "as I wouldn't own any other properties at that time"Emphasis on the "I".And the answer is, no you wont, but the company will. You arent buying anything, the company is.
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It's clear in the SDLT manual that the company will have to pay the higher rate of SDLT on the consideration paid regardless of it being the first and only property owned by the company.Jorayme said:Thanks. I was looking to do it as a first one, with others to come. I didn't know if, as I wouldn't own any other properties at that time, I'd have to pay the extra 3%. I'm also a higher rate tax payer so looking to save on tax via the company.
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730
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As it is purchasing from a connected person SDLT will be based on market value. It’s one of those special rules that apply to companies.Lover_of_Lycra said:
It's clear in the SDLT manual that the company will have to pay the higher rate of SDLT on the consideration paid regardless of it being the first and only property owned by the company.Jorayme said:Thanks. I was looking to do it as a first one, with others to come. I didn't know if, as I wouldn't own any other properties at that time, I'd have to pay the extra 3%. I'm also a higher rate tax payer so looking to save on tax via the company.
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm097303
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