I have a client who owns a private flat, currently, as a second home and she receives rental income from it in her personal capacity.
She has since started operating as a Limited Company and looking to grow her property portfolio so company can be considered as buy-to-let.
She has recently downgraded her main residence accommodation and can afford to buy at least two properties from the proceeds. She is trying to beat the additional 3% of stamp duty by the 1st of April so wants to buy the two properties before then.
As she owns a property in London already any more property purchases will attract the stamp duty surcharge if not bought before 1 April 2016..
Could you please advise if it is acceptable to purchase the properties in the name of the company?
In case she does not manage to buy the properties before 1 April 2016, does the 3% surcharge also apply to Limited Companies.
Since her main residence has been disposed of I assume that the London property can now be considered main residence. Any comments please?
Does one have to live in a place for it to be considered main residence? She does not want to line in the London but live out in the country. Is main residence living
in it or just ownership.
Any assistance is greatly appreciated.
LM
Replies (5)
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That's a bit rude
But admittedly rather funny. There is some useful guidance here:
http://www.patrickcannon.net/uploads/documents/PC1692%20The%203pc%20Addi...
Hi
Not wanting to be rude, but I would recommend that you either refer the client to an adviser with experience in this area, or that you subcontract the work out to the same.
From what you've said, it doesn't sound as though you have much experience in either CGT main residence relief planning, or property investment companies, and so there is a danger that if you don't advise the client appropriately, it might come back to bite you on the posterior later on.