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  • Tax

    Minimising stamp duty

    To all property gurus,

    I am going to move home and rent out my current house. Can I avoid stamp duty surcharge by renting out through a limited company?

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    Thanks don for your reply. In that case If i go ahead with this anyway, can I deduct the tax surcharge from rent income before calculating company profit for corporation tax?

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    Saman if you were a sole trader or a partnership the answer would be no so i am almost certain a ltd company would be treated the same

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    No, can't count costs of acquiring property assets against income - only when you sell it would stamp duty be deducted against capital gain . ( I think)

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    DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.

    No you can't avoid the stamp duty.

    But don't just consider the stamp duty - remember the cgt too.

    If you sell your current property to Ltd - then Ltd will pay stamp duty on it, even if its the first one, but you also lock in your tax free cgt gain on main residence, which might be advantageous .

    Also if your new home is a lot more expensive than your current home then you could not avoid stamp surcharge, but might pay less. (because Ltd would pay it on purchase of current home, but you would not pay it on purchase of new main residence .

    Also need to consider effect of fees which might wipe out any tax savings.

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    DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.


    Thanks all for your great comments.

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