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Building & holding buy to let stamp duty & vat

Looking at vat & stamp duty implication on building buy to let

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We are building 5 units we initially built for resale and as new builds reclaiming vat element , we have now considered the market and are looking to keep for buy to let portfolio , what are the stamp duty and vat implication if we transfer ownership from our development ltd company to our buy to let ltd company ... so intercompany transfer . Would we be liable for stamp duty ?  if this is an inter company transfer sale ... looking for best financial efficient route 

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By Paul Crowley
13th Nov 2021 12:22

You could choose to leave the properties in the company and start a new development company

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By David Ex
13th Nov 2021 13:04

If it was me, I’d be taking some professional advice. Property and VAT can be a complex combination. The costs of getting it wrong surely outweigh the cost of consulting your accountant.

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chips_at_mattersey
By Les Howard
13th Nov 2021 15:17

Commercial or residential?
TOGC is one option, as is option to tax for commercial properties.
Lots of questions - put them to a specialist.

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By Sallybooks
13th Nov 2021 19:26

Hi
Thanks yes it residential we have asked our accountant and he is unsure so he trying to find out , I was hoping there might be a well versed professional on here who could point me in the right direction .

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Replying to Sallybooks:
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By David Ex
13th Nov 2021 20:02

Sallybooks wrote:

Hi
Thanks yes it residential we have asked our accountant and he is unsure so he trying to find out , I was hoping there might be a well versed professional on here who could point me in the right direction .

You’re in a line of business where the best bet would be a local building/construction specialist rather than a generalist who could probably work it out but might take longer. If you say where you are, someone may have a suggestion (although I guess physical location isn’t crucial).

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Jason Croke
By Jason Croke
14th Nov 2021 17:07

Surprised your Accountant couldn't answer this...

Sell dwellings into Propco, zero rated. If Propco is in a corporate group then SDLT relief applies.

You should still get proper advice as lots to get wrong, not just for VAT or SDLT, but what you propose is doable but don't try and DIY because you will get it wrong.

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Replying to Jason Croke:
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By Sallybooks
14th Nov 2021 19:11

Hi
Thanks for this info will message you direct .

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