I am looking to purchase/lease a Beach Hut with the view to use occassionally for pleasure, but also to rent out to cover costs and put the excess towards a university fund for my children.
The price is £50,000 (up-front) for a 20 year term, at which point, I will hand back the keys (and may receieve a small token amount in return). It is similar to a caravan purchase. I have put down a £5,000 deposit from personal savings already.
I'm looking for a few bits of advice.
Do you think the transaction be subject to stamp duty? We own a BTL already.
We are both higher rate tax payers, so we think it would be better to set up a LTD company for the lettings and run it like a proper business. Presumably that will be more tax efficent. But we may be purchasing before we can set up a LTD, and in any case, the funds are personal - so is that allowed? Or do we need to make sure the hut is sold/leased in our company name?