Residential property acquisition for children

Residential property acquisition for children

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Hi all,

I'm living with my wife in Portugal (we are both italian citizen) with my son and my doughter living in UK in a rented property (contract in my son name but I fund the rent cost as they are still studying). We all have the EU settle status, anyway me and my wife will lost that status soon due we left the UK years ago.

I'm considering to buy a property in UK to be used by my children (and me/my wife when we come to UK) and I'm looking for the way to pay the acquisition and the best structure to minimize the SDLT cost.

I think the best and more flexible way to buy the property is to create a UK LLP with my children as members with 50/50 interests and acquire the property using this structure. Tenants in common could also be an option but an UK LLP give much more flexibility in case they want to pass their interests to children in the future.

Due there are no corporate members in the LLP and the members don't own properties in UK and abroad then the LLP should pay the SDLT as a real person: 

Up to £250,000    Zero
The next £675,000 (the portion from £250,001 to £925,000)    5%
The next £575,000 (the portion from £925,001 to £1.5 million)    10%
The remaining amount (the portion above £1.5 million)    12%

Is it correct in your opinion ?

Another doubt is regarding the funds to acquire the property.  The easyest way would be to pay the acquisition on my behalf through my personal company (based in US and I'm the only owner) but I'm not sure this process is acceptable in UK as the title will be in the LLP name or in alternative from my personal bank account after dividend distribution from my personal company. What do you think about ?

Thank you in advance

Marco 

 

 

I obviously will discuss this matter with an UK lawyer at the end but I would like 

 

 

 

 

 

Replies (3)

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By possep
26th Apr 2023 13:50

I think that you should appoint a specialist in this area.

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By Justin Bryant
26th Apr 2023 14:42

No-one sensible buys UK dwellings in LLPs for them or their kids etc. to live in for very good tax reasons is all you need to know here.

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RLI
By lionofludesch
27th Apr 2023 09:21

Not a question to be posing on an internet forum.

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