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  • Tax

    Stamp duty

    Hi Tribes,

    I f we sold are old resident within 18 month time frame to are new SPV company, would we get stamp duty back. If not just wondering if we should transfers into company sorry if this is a daft question and already been answered. We are both 35 if this helps with answers.

    just wondering if you can help, we have set company up to buy any future btl properties, were just in the process of purchasing btl in a company. We bought a new main resident and rented out are old house this is valued at £211,000, by Halifax index today.

    morgage on this is 147,000 at the minute on concent to let basis, interest is 1.84 and will be due for remortgage next year and from today the rate they would offer if kept with Halifax is 2.74. With interest rates more than likely going up I’m thinking3% rate I’m looking at interest of 367.00.

    so looking at section 24, I’m looking at 147.00 per month if I’m correct, rent I receive on this property is £ 875.00

    so I’m thinking would this be worth transferring in a company , as we have are own business so. The deposit would come from the other company and we could then have the money in are bank, instead of are business which we are struggling getting any more than 45,000 each. As then we are 40 % tax payers and we have 5 properties in are sole name .

    Thinking if we had the money from old resident sale, we could take less from company.

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    If you sell your previous residence to your company within 3 years of purchasing the new residence then yes you can reclaim the extra 3% SDLT.

    Debbie

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Thankyou debbie , so would you say this is a no brainier for us , it’s such a hard one isn’t it .

    its a minfield lol , so I think I would need to pay stamp duty of 8 grand on a ruff estimate. 

    I have seen on here that if were a partnership for 3 years , would we still have to pay stamp duty if sellin to are new company.

    thanks Debbie

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    You need to do the sums as the company will pay the extra 3% on the purchase of your old residence.

    Deb

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    Debbie Franklin

    Director of Tax Peplows Limited

    CTA ACA FCCA

    Hi Debbie,

    i thought this we paid 203,000 for old resi, and 420 for new one.

    So 23500 to pay in stamp duty , so thinking we will get £11,600 back.

    so stamp duty on old One If transferred at 210,000, will be £8000. Same house as mine just sold last year at 216,000, which was cheap as sold to friend of owners.

    If they go of Halifax index it will be 210,000 .


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