Stamp duty refund

Kym122

Hello, I was wondering if anybody had any experience of the following at all?

I lived in my previous residential for around 10 years, I bought a new residential property in May 2024 but kept my old one and rented it out. This meant I paid higher rate stamp duty on my new property.

i have a limited company for the purpose of renting property. I want my company to purchase my old residential from myself in order to get a refund on the higher rate of stamp duty I paid on my new house.

Has anybody done this in the past, so you think this would work?

thanks!

Isthisforreal99

Have you discussed this potential arrangement with your accountant?

You do realise CGT will be due if you sell/transfer from you to the Ltd? Then the company will need to pay SDLT on acquiring this property. Pretty self defeating I would say.

MDMD

Plus (depending on the amount) you may need to pay an annual ATED charge

https://www.gov.uk/guidance/annual-tax-on-enveloped-dwellings-the-basics

_Penny_Dreadful

Kym122 said:

Hello, I was wondering if anybody had any experience of the following at all?

I lived in my previous residential for around 10 years, I bought a new residential property in May 2024 but kept my old one and rented it out. This meant I paid higher rate stamp duty on my new property.

i have a limited company for the purpose of renting property. I want my company to purchase my old residential from myself in order to get a refund on the higher rate of stamp duty I paid on my new house.

Has anybody done this in the past, so you think this would work?

thanks!

Disposing of the rental property will entitle you to a refund of the higher rate of SDLT you paid when buying your new home.  However, when the limited company buys the rental property it will have to pay the higher rate of SDLT even if it's the only property the limited company owns.

CGT is unlikely to be an issue on the disposal because you will receive Principal Residence Relief for the 120 months you owned and lived in the property plus an additional 9 months.