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First time buyer with B2L
Comments
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Plus you'll have all the other costs of setting up and running the company. But yes, that would be an acceptable solution for SDLT purposes. As explained above, you no longer qualify for any FTB concession on the SDLT for your purchase though.thegentleway said:
Yes indeed but the B2L is much cheaper that the family home so SDLT will be much lower. I will have to pay CGT when I come to sell it anyway.MaryNB said:
The limited company would have to pay stamp duty on the transaction at the market value of the property and you may have to pay CGT.thegentleway said:What about creating a company and selling the B2L to the company?2 -
@thegentleway You can absolutely do that, and it's not uncommon where the client is buying a high value property and the BTL (or current home being turned into a BTL) is low value.thegentleway said:What about creating a company and selling the B2L to the company?
But if it's your only BTL, you don't intend to grow your portfolio or you intend to sell in the near/med term, it's a lot of faff.I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
1 -
Thank you, I don't qualify for any FTB concession as the property we are looking to buy is over £500k. It was just the 3% additional SDLT for a second property that was the issue as it would be £24k.user1977 said:
Plus you'll have all the other costs of setting up and running the company. But yes, that would be an acceptable solution for SDLT purposes. As explained above, you no longer qualify for any FTB concession on the SDLT for your purchase though.thegentleway said:
Yes indeed but the B2L is much cheaper that the family home so SDLT will be much lower. I will have to pay CGT when I come to sell it anyway.MaryNB said:
The limited company would have to pay stamp duty on the transaction at the market value of the property and you may have to pay CGT.thegentleway said:What about creating a company and selling the B2L to the company?
With regard to transfering the property into a company; assuming it's worth £230k, that's £9k in SDLT? £125k at 3% + £105k at 5%
No one has ever become poor by giving0 -
K_S said:
@thegentleway You can absolutely do that, and it's not uncommon where the client is buying a high value property and the BTL (or current home being turned into a BTL) is low value.thegentleway said:What about creating a company and selling the B2L to the company?
But if it's your only BTL, you don't intend to grow your portfolio or you intend to sell in the near/med term, it's a lot of faff.
Thank you, it's my only BTL, don't intend to grow my portfolio but wasn't planning on selling.
No one has ever become poor by giving0 -
Yes, £9,000 SDLT on a market value of £230,000. That assumes the company counts as UK resident for SDLT purposes.thegentleway said:
Thank you, I don't qualify for any FTB concession as the property we are looking to buy is over £500k. It was just the 3% additional SDLT for a second property that was the issue as it would be £24k.user1977 said:
Plus you'll have all the other costs of setting up and running the company. But yes, that would be an acceptable solution for SDLT purposes. As explained above, you no longer qualify for any FTB concession on the SDLT for your purchase though.thegentleway said:
Yes indeed but the B2L is much cheaper that the family home so SDLT will be much lower. I will have to pay CGT when I come to sell it anyway.MaryNB said:
The limited company would have to pay stamp duty on the transaction at the market value of the property and you may have to pay CGT.thegentleway said:What about creating a company and selling the B2L to the company?
With regard to transfering the property into a company; assuming it's worth £230k, that's £9k in SDLT? £125k at 3% + £105k at 5%2 -
What about transfering 51% of the property to a company?
Does that mean I still have to pay the additional 3% on the residential property?
No one has ever become poor by giving0 -
Yes, you'd still be an owner. Doesn't matter whether you own 100% or 49%.thegentleway said:What about transfering 51% of the property to a company?
Does that mean I still have to pay the additional 3% on the residential property?1 -
There is a de minimis limit. 25% springs to mind, but ICBW.user1977 said:
Yes, you'd still be an owner. Doesn't matter whether you own 100% or 49%.thegentleway said:What about transfering 51% of the property to a company?
Does that mean I still have to pay the additional 3% on the residential property?No reliance should be placed on the above! Absolutely none, do you hear?1 -
How do I find out what the limit is?GDB2222 said:
There is a de minimis limit. 25% springs to mind, but ICBW.user1977 said:
Yes, you'd still be an owner. Doesn't matter whether you own 100% or 49%.thegentleway said:What about transfering 51% of the property to a company?
Does that mean I still have to pay the additional 3% on the residential property?
No one has ever become poor by giving0 -
As I said, I could be wrong!thegentleway said:
How do I find out what the limit is?GDB2222 said:
There is a de minimis limit. 25% springs to mind, but ICBW.user1977 said:
Yes, you'd still be an owner. Doesn't matter whether you own 100% or 49%.thegentleway said:What about transfering 51% of the property to a company?
Does that mean I still have to pay the additional 3% on the residential property?No reliance should be placed on the above! Absolutely none, do you hear?0
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