Stamp Duty Land Tax

franco1990

Looking for help with the below scenario:

I currently have a mortgage on my home in England. In a couple of years, I plan to sell this house and use the proceeds, along with my savings, to buy a larger property with my girlfriend. We plan to purchase the new property together, each contributing 50/50.

In the meantime, I intend to go 50/50 with a friend to set up a limited company, through which we will purchase a property to rent out.

My question is: If I become a director of this company that owns a rental property, will it affect my stamp duty or tax obligations when I sell my current home and buy a new one with my girlfriend?

Thanks in advance for any help.

Flugelhorn

I understand that exchanging one main residence for another doesn't lead to you paying the higher SDLT. 

_Penny_Dreadful

franco1990 said:

Looking for help with the below scenario:

I currently have a mortgage on my home in England. In a couple of years, I plan to sell this house and use the proceeds, along with my savings, to buy a larger property with my girlfriend. We plan to purchase the new property together, each contributing 50/50.

In the meantime, I intend to go 50/50 with a friend to set up a limited company, through which we will purchase a property to rent out.

My question is: If I become a director of this company that owns a rental property, will it affect my stamp duty or tax obligations when I sell my current home and buy a new one with my girlfriend?

Thanks in advance for any help.

You won’t own the investment property, the company will, and being a director of said company has no bearing on the SDLT you will pay on any residential property you purchase yourself. 

The limited company however will be subject to the higher rate of SDLT on the purchase of the investment property. 

Bookworm105

as above, the company pays the SDLT on the property that it will own
that has no bearing on your personal property purchase

SDLT_Geek

I agree with @_Penny_Dreadful and @Bookworm105