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Selling my house to my own limited company - is this a good idea?

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  • MDMD
    MDMD Posts: 1,559 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    davidmcn said:
    Your company would also be liable for SDLT (or equivalent) at the higher rate on its purchase price.
    And ATED if valued at over £500k

    https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics
  • Purioso
    Purioso Posts: 5 Forumite
    Tenth Anniversary Name Dropper First Post Combo Breaker
    Thank you for the comments everyone.

    I think I confused myself when writing my post, so here's some extra background:

    So, I could potentially transfer ownership of my house to my own company.  Could I?  That would bring some tax benefits (corporate v income), initial costs to set up a ltd company and but some problems if I wanted to sell or withdraw income from the company (thanks @theoretica).

    Or, I could sell my house to 'myself', i.e. my company, and would need to raise the deposit for the company to buy it and have ongoing repayments.  Could you re-mortgage the property to do this?  Would this negate any gains from the tax income advantage above with the extra costs?  This would be a long term arrangement, as I want to retain the house.

    Capital gains if I sold would affect approximately £85, 500.  What would be the cost on this?

    I appreciate this all might be totally obvious to people in the know, or I've understood things incorrectly - but that's why I'm here, i.e. to figure this all out. :-)

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