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Circumvent new Stamp Duty

Circumvent new Stamp Duty

Post 1 April, if a home owner owns a company which doesn't own any property, which of the two rates of SDLT is payable?

If caught under 'Additional Home Rate' can't the company simply be incorporated by someone who doesn't own a home, then the shares transferred to someone else, who actually owns a home, afterwards?

Mortgage not an issue

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By JimFerd
25th Feb 2016 12:15

I believe companies pay the additional 3% SDLT on residential properties, even if it is their first purchase.

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By awoodj
25th Feb 2016 12:23

Agreed

JimFerd wrote:

I believe companies pay the additional 3% SDLT on residential properties, even if it is their first purchase.

Correct, it was put in to stop people buying a property in a new company each time.

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By Exector
25th Feb 2016 12:31

higher higher

and its 15% SDLT plus pot ATED if residential property over £500K,  if not part of a bona fide property business

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