Buy to let

martty

I currently have 2 properties. One mortgage free which I bought recently and I paid the Additional Dwelling Supplement of £7000. I have £70000 left on the mortgage to my other house, which i want to transfer to a buy to let mortgage and rent out. Is there anyway I can transfer one to a PLC company name so I can keep the 2 properties and clain the ADS tax(£7000) back?

martty

I currently have 2 properties. One mortgage free which I bought recently and I paid the Additional Dwelling Supplement of £7000. I have £70000 left on the mortgage to my other house, which i want to transfer to a buy to let mortgage and rent out. Is there anyway I can transfer one to a PLC company name so I can keep the 2 properties and clain the ADS tax(£7000) back?

Veteransaver

If you transfer to a ltd company you'd have to pay stamp duty I believe.

TheSpectator

One thing it won't be is a PLC company. If you don't know the difference between a PLC and Ltd then is really a road you want to take.

Hoenir

The Company will pay stamp duty on acquiring the property. Not as simple as a transfer. It's a sale and purchase transaction. 

Caz3121

does the company already exist? have you explored to possibility of the company getting a mortgage and the rates? have you looked at the requirements of operating a company for a single property?

Grumpy_chap

martty said:

I currently have 2 properties. One mortgage free which I bought recently and I paid the Additional Dwelling Supplement of £7000. I have £70000 left on the mortgage to my other house, which i want to transfer to a buy to let mortgage and rent out. Is there anyway I can transfer one to a PLC company name so I can keep the 2 properties and clain the ADS tax(£7000) back?

I assume you mean Ltd Co. and not PLC.

You own the property (2) at present and would be selling that property to a newly formed Ltd Co. of which you are the sole Shareholder and Director.  
The Ltd Co. will need to have funds to buy the property from you at market rate.
The Ltd Co. will need to pay stamp duty (at the second property rate as a Non-Natural Person).
The Ltd Co. will pay corporation tax on any gain in value when the property is sold.

If you do the above, you can reclaim the higher rate SDLT on the recently purchased property (1).
You will incur a CGT charge for any period that the property was not your PPR (principal primary residence) when the property is sold to the Ltd Co.  (If you do not sell the second property now to the Ltd Co. you will incur a future CGT liability).

Have you researched the liabilities and obligations of being a LL?

housebuyer143

You won't be able to transfer the mortgaged one to an SPV as the lender will not allow it unless you pay off the loan and start again. Ltd cos tend to have higher rates than standard also.