Stamp duty on a "second home" advice please

Discussion in 'General Property Investment Discussion' started by munchys, Jan 25, 2018.

  1. munchys

    munchys New Member

    I have a small buy to let in Yorkshire which is worth a lot less than I paid for it.

    If I sold it now I would owe the bank around 10k

    However I live in London and rent and would dearly love to buy

    Does anyone know what my options could be in terms of the hefty stamp duty surcharge I would have to pay if I bought now?

    It feels very unfair that homeowners who have bought their home get a dispensation when they sell and buy, when my rental property is in fact my "main residence"

    Could I buy via a Ltd company?

    Maybe buy a pub/ shop or office and convert it into a flat? Would I still pay the surcharge?
  2. realdeals

    realdeals Active Member

    As far as I am aware buying a property in a company will seperate the assets in the eyes of the law because a company has its own legal "identity". I would also suggest that the stamp duty charge could be offset against future income/profits when it comes to buying property in a company. However, I would run this by an accountant to see exactly how it works.

    P.s. You would still need to pay rent if you lived in the company property - but this would go to the company - otherwise if you lived rent free this would be seen as a perk and I assume you would be taxed on it. Again, I strongly suggest running this all by an accountant.
  3. nmb

    nmb Well-Known Member

    Has the Yorkshire property market really been that bad that you are £10k down on your initial investment? I would guess it is a fairly highly priced property?

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