X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Mortgages & Finance

    Moving Property to a Ltd Company

    Hi All,

    I wanted to get members option moving 1no. of my properties to a Ltd. I shall do my best to explain the circumstances.

    We moved from our family home about 18 months ago and retained it and rented it out. As we keep it we had to pay the increased stamp duty on our new family home which was a huge amount of money for us.

    I now own my own company and with the 2no. BTL's in my personal personal possession and it almost doubles my tax liability due to the tax change started in 2017/18. So my quires are this:

    1. As it was our primary home we will only pay CG tax after the point we moved (its actually gone down)?

    2. I believe I can claim back the extra stamp duty paid as it falls within the 3 year mark?

    3. How would the Ltd company finance this as the money is in the property I propose to move across?

    I would get grateful for other peoples insight and for people to 'punch holes' in my idea given my circumstances. To me it seems that if what I plan to do is possible I will only be paying for the legal fees.

    I won't fill the post with figures until I know if this is the right thing to do.

    Thanks all.

    0
    0
    Hi there,

    We did something similar last year. We found our new home but did not have time to sell or be in a chain.

    I got consent to let from my lender whilst in the process of selling it to my ltd company.

    I got a 75% LTV BTL mortgage, which paid off my existing residential mortgage and left me with a bit of cash to spare (I had a good chunk of equity in it).

    The 25% “deposit” for buying my old home into the company was actually a director’s loan deposit, so I didn’t have to put any cash up front. Huge help.

    That director’s loan can then be repaid to me personally out of the limited company whenever the funds are available.

    CGT didn’t apply because we had only been out of it for about 6 months before it sold.

    Better to take professional advice on that one!

    We claimed back the additional stamp duty on our new house as soon as the old one sold to the limited company. Filled in a form from HMRC’s website and after a bit of to-and-fro explaining it to them a couple of times we got a cheque refunding the additional SDLT.

    It didn’t take too long.
    0
    0

    Hi magicmanalex,


    Thank you for your rely.


    I shall now speak with our accountant as this would be very help and more tax efficient for me to do it this way.


    I guess I will need to check with existing mortgage provider (btl) if there is an early redemption charge on the sale of the property.


    Thanks again

    0
    0

    Hi magicmanalex

    Looks like im in the same situation.
    if i sell my 1st property to my ltd company of which im a director i get stamp duty refund paid for 2nd home. please confirm?



    Also
    0
    0
    Hi Ikqureshi,

    Yes.

    You will obviously pay stamp duty on the sale of your 1st home into the limited company. I’m not aware of any way round this but I’m not a tax advisor or accountant so always best to get professional advice.

    At that point, you can apply for a partial refund of the stamp duty you paid when you purchased your new residence (i.e. the higher / additional portion of it).

    I think there is a 3-year time limit in which you have to claim it though. Again, speak to a professional or check HMRC’s website.

    https://www.gov.uk/government/publicatio...properties
    0
    0