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Posted Tue, 14 May 2024 17:41:48 GMT by Eson
I am purchasing a new primary residence and would like to retain my existing primary residence as an investment property. I intend to sell my existing primary residence to a new limited company (of which I will be sole shareholder and director) at the same time as the replacement primary residence is purchased. I understand that SDLT will apply at the normal rate on the new purchase and that the limited company will pay SDLT for the existing primary residence which will be transferred in line with independent market valuation. I understand that CGT will not apply to the disposal of my existing primary residence. I understand that the equity I hold in my existing primary residence will be viewed as a Director's loan to the limited company. As such, I intend to refinance the existing primary residence when this is purchased by the company and to draw these funds from the company to support the new property purchase. I understand that these funds can be drawn from the limited company tax free on the Director's loan account. Please can you confirm that my understanding is correct as it relates to SDLT, CGT and Directors Loans?
Posted Wed, 29 May 2024 07:32:21 GMT by HMRC Admin 20 Response
Hi Eson,
Unfortunately we cannot provide accountancy advice.
You may need to seek the assistance of a professional tax advisor/accountant. 
Thank you.

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