Stamp duty advice

PinkRose1983

Hello I wonder if somebody can help advise? My husband and I purchase some derelict cottages 2 years ago, they are completely uninhabitable, they need to be demolished but are grade 2 listed (a whole other story). They don’t even have a roof. We purchased them through our ltd company, of which we are both directors. Behind them (separate listing on the land registry) we rent a house, which I am now in the process of buying (as a sole applicant). Does this mean I’ll have to pay second home stamp duty? I’m unsure and can’t find much information online in regards to this 
Thankyou to anyone who can help 

user1977

In short, no, the fact you own shares in a property-owning limited company doesn't affect your own stamp duty liabilities.

bobster2

If they really are uninhabitable they may not count as residential dwellings. 

But it could depend on just how poor the state is. Some guidance here..

https://www.patrickcannon.net/news/criteria-for-uninhabitable-property/

https://www.ukpropertyaccountants.co.uk/complete-guide-stamp-duty-on-uninhabitable-property/

PinkRose1983

bobster2 said:

If they really are uninhabitable they may not count as residential dwellings. 

But it could depend on just how poor the state is. Some guidance here..

https://www.patrickcannon.net/news/criteria-for-uninhabitable-property/

https://www.ukpropertyaccountants.co.uk/complete-guide-stamp-duty-on-uninhabitable-property/

Yes it’s definitely un in habitable, it has orders on it to prevent entering due to safety risk, and is at risk of collapse. Thankyou for the links- very helpful!

SDLT_Geek

PinkRose1983 said:

Hello I wonder if somebody can help advise? My husband and I purchase some derelict cottages 2 years ago, they are completely uninhabitable, they need to be demolished but are grade 2 listed (a whole other story). They don’t even have a roof. We purchased them through our ltd company, of which we are both directors. Behind them (separate listing on the land registry) we rent a house, which I am now in the process of buying (as a sole applicant). Does this mean I’ll have to pay second home stamp duty? I’m unsure and can’t find much information online in regards to this 
Thankyou to anyone who can help 

Are these properties in England, so the relevant stamp duty is stamp duty land tax?

If so, I agree with what others have said.  For your personal purchase, the SDLT analysis does not depend on what your limited company owns.

There is another point though.  When your limited company bought the derelict cottages two years ago, did it pay SDLT on the basis that they were residential property (with the extra 3%) or on the basis that they were non-residential?  From what you say, the non-residential rates are likely to have been appropriate.  It is too late to "amend" your return, but you might be able to claim overpayment relief if the company overpaid SDLT.

SkylineExplorer

That sounds like a tricky situation!

From what I understand, if the cottages are uninhabitable, they might not count as a ‘dwelling’ for stamp duty purposes, but it’s worth getting professional advice to be sure. A solicitor or tax advisor could clarify this for you.

Best of luck!

PinkRose1983

Just for anyone else that may be in a similar situation, my solicitor has confirmed no second property stamp duty, as limited company doesn’t have an impact on your personal liability