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  • Buy-to-Let

    First BTL and stamp duty

    Hello

    I am looking to buy my first BTL. I have a residential property and will be starting a Ltd company to purchase and run the BTL. I probably will not settle for one so for tax efficiency I have opted for the company route.

    My question though is about stamp duty. If I buy another property myself I have to pay the extra stamp duty. If I buy through my company do I still have to pay the extra?

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    I'm also likely doing this. Would be great if any resources for doing this could be shared.


    Thanks

    Adam

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    Sorry let me clarify. There is no additional 3% SDLT applied for companies. But the SDLT rate is 3% higher even for the first purchase.

    If you are buying in your own name then that will be treated separately but as you have a home already you will need to pay the extra 3% (unless you sell your home within 3 years including to your own company).

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    Hi GPKW,

    See the following link to HMRC's website: https://www.gov.uk/guidance/stamp-duty-l...erty 

    To quote:

    "Companies must pay the higher rates for any residential property they buy if:

    • the property is £40,000 or more
    • the interest they buy is not subject to a lease which has more than 21 years left

    If the property costs more than £500,000, the 15% higher threshold SDLT rate for corporate bodies may apply instead."

    Kind regards,

    Team Vesta

    https://www.vestaproperty.com

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    But note recent advice here on PTs about avoiding stamp duty where total refurb necessary.

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