The November edition of 'Any Answers Answered' features TAXtv hosts Giles Mooney and Tim Good discussing two recent questions from AccountingWEB.co.uk members.
The first question on stamp duty came from AccountingWEB member whatdoyoumeanwashe and centres on a situation where somebody is living in a house, they’re going to buy another house and live in it for a bit. They’re then going to rent it out and buy another house that they might live in.
Giles Mooney said there was a lot of confusion about the 3% stamp duty surcharge for second homes because there is this exemption if it is the house that you’re living in.
Tim Good said it was an interesting question because it includes a chain of property transactions and the question was whether as a result of transactions within that chain the individual can recover the 3% additional SDLT they had to pay when purchasing a second home.
Good explains the 3% rule and provides a full answer in the video below.
Giles Mooney moved on to the second question, asked by Aves Accounting and Tax, and said it was relatively straightforward but that the issue was attracting a lot of confusion up and down the country.
If you are incorporating a business, take the goodwill value within the unincorporated business, and sell it to or transfer to the newly formed company. However Mooney said the question goes back to the point: “Can we successfully argue that the goodwill was justified in the first place in terms of the valuation that has been put on it?”
For Tim Good’s full answer on the transfer of goodwill, watch the video below:
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