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  • Tax

    Reducing Stamp Duty & long term options

    Hi,

    I am going to seek a financial advisers input but would greatly appreciate any advice the forum could offer.

    Me and my girlfriend are going to purchase a property together £390k Value, we both currently own BTL properties of value of around 110k with mortgages.

    I am aware that as we already own properties we will be subject to the higher rate of stamp duty, which will be a stamp duty payment of around 21k total. We want to keep the BTL properties and moving into them temporarily is not an option.

    I have investigated options to potentially reduce our stamp duty liability, which are as follows.

    1. Sell my BTL to a SPV. Purchase new house with a Joint Borrower Sole Proprietor Mortgage. This would reduce the stamp duty down to 9.5k but would mean my girlfriend wouldn't be on the deed which isn't ideal. I could put her on the deed after we get married but that would cost around 6.5k in stamp duty, so doesn't offer much of a saving.

    2. Sell both BTL to the SPV. This will save a small amount after the reduced stamp duty payment but will leave us with two properties in the SPV, which could be better long term. I am a higher tax rate payer she is not.

    Any viable options I have missed? Is it a financial adviser I need to speak to, or is the another specialist that would be more appropriate?

    Thanks for your time and any guidance you can offer.

    Adam

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    You have missed out some of the facts, it may be that your analysis on both options is wrong.

    you need to engage a tax advisor.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    Thanks Stuart. Ill look to contact a tax adviser. If you need to know any other facts happy to elaborate.

    Adam

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