Podcast Summary
Buying a primary residence through a limited company: Not as simple as it seems: While it's possible to buy a primary residence through a limited company, the process may not be straightforward and may not result in stamp duty savings for the individual.
While it is technically possible for an individual to purchase their primary residence through a limited company, it may not be easy or financially advantageous as previously thought. Steve from Bristol asked if it's possible to buy a primary residence through a limited company and retain stamp duty savings. The answer is yes, but the process may not be straightforward. Most limited company mortgage lenders are likely to only finance properties for investment purposes, meaning the borrower may not be able to live in the property. The primary reason people consider this option is for stamp duty savings, but unfortunately, this is not as simple as it seems. When assessing the need to pay the additional stamp duty for multiple properties, the authorities look at the directors of the company and their personal property holdings. Therefore, the individual would still be liable for the additional stamp duty. It's essential to consider all the implications before deciding to purchase a primary residence through a limited company.
No stamp duty loophole for owning more than 15 properties through a company: Investors cannot avoid the 3% stamp duty surcharge for owning more than 15 properties by buying through a company
Owning properties through a company to avoid the additional 3% stamp duty for more than 15 properties is not a viable strategy. The Chancellor has addressed this potential loophole, and owning more than 15 properties as a company does not exempt one from paying the additional stamp duty. Despite this, there may still be other benefits to buying a primary residence through a company that are worth exploring. Overall, it's important for investors to stay informed about tax laws and regulations to make the most informed decisions when it comes to property investments.
Stay informed and stay safe when dealing with stamp duty: Be cautious when considering creative schemes to avoid stamp duty. Comply with HMRC rules or seek professional help from reliable sources to legitimately reduce tax liabilities.
While some people may try to sell creative schemes to help you avoid stamp duty, the responsibility ultimately lies with you. It's important to be cautious and ensure that any advice or solutions you pursue are reliable and trustworthy. For most individuals, the safest approach is to comply with the rules and regulations set by HMRC. However, there are legitimate ways to reduce your tax liabilities, and seeking professional help from services like Property Hub Tax can be beneficial. Remember, it's always important to do your research and ensure that the people you trust have a proven track record and are reliable. Stay informed and stay safe. For more information on Property Hub Tax and how it can help you, visit propertyhub.net/tax. Until next time, stay tuned for more insights on the property market on the Property Podcast and Ask Robin Rob.
