Jump to content

Transfer of current property into Ltd Company & buying a property as main residence


Recommended Posts

1. Do I need to pay high rate SDLT on my 2nd property (which would be £16800) if I transfer my current residential property to a LTD company (SDLT £9500) and buy 2nd home as my main residence.

2. Can I reclaim £16800 - £ 9500 = £6300 if I buy first buy 2nd property and pay £16800 and later on sell my 1st property to a LTD company ( with either me or my wife as director ) and pay £9500 SDLT on this sale. 




Link to comment
Share on other sites

Can I sell my residential property to a LTD company of which my wife/ or I am a director and then call my self as a 1st time buyer and go on and buy another property?

Someone told me you will still be a 2nd time buyer and have to pay high rate SDLT. Can someone please confirm.

Link to comment
Share on other sites

I can't answer your question, I'd suggest you check with your tax office or an accountant.

However, I do have a few points:

* You haven't said what you intend to do with the property once held by the Ltd co.

* You will need to pay to form a Limited Company.

* If you are going to raise a Ltd co mortgage, be aware that interest rates are higher for a  Ltd co.

* The Ltd co will need to pay legal fees and SDLT when buying your property.

* The Ltd co will need to pay corporation tax on any rental income, in addition you will need to pay income tax on any money you take out other than dividends .


Link to comment
Share on other sites

Thank you for the reply.


I have looked into all these costs and by moving to a LTD company I am saving approx 300 per month after paying corporation tax and others costs and will save SDLT on my 2nd property which is more than what I pay when I move the property to a LTD company.


So in all I will save approx £4000 on SDLT and 300 per month on rent..


But not sure if I have one BTL property in LTD company (of which I am a director) will i ve considered as a first time buyer if I go and buy a another residential property

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Create New...