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Posted Tue, 03 May 2022 15:50:40 GMT by MBBInvestments
Good afternoon I have a query on a potential SDLT refund I hoped somebody could clarify for me. • I bought a property to live in, in my personal name for £127,500 in Dec 2015. • Then in October 2019, me and my partner bought a new property to move into, but kept the flat mentioned above as we weren’t able to sell it, so we got a tenant for it instead. This meant that when we bought our new house we had to pay additional SDLT as it was a second property, we paid £7,450 and looking at the online SDLT calculator we would have paid £1,480 if it was our only home, so £5,970 in additional stamp. We were advised that if we were to sell the flat within the next 3 years we would be able to reclaim the additional SDLT paid on the transaction. • I’m now looking at setting up a limited company, with myself and my partner as 50/50 shareholders, and transferring the flat at market value from my name personally to the new limited company, and just keep renting it out as we are now. I am aware this will mean that SDLT is payable by the new limited company on this transaction. My query is if I do sell the flat between me personally to the new limited company, will I be able to claim an SDLT refund on the amount I paid in October 2019? As I will no longer personally own 2 properties, me and my partner will own our house and the flat will be owned by the new limited company. If I can claim a refund, I am presuming the amount I will be due back is £5,970 as this is the additional I paid, is this correct? Or does the fact that although I won’t own the flat personally, but will be a shareholder of the limited company that owns it mean that I’m not able to claim the refund? I have read the guidance online and cannot see that I wouldn't be able to claim a refund, but I wanted to make sure before I proceeded with the transaction. Many thanks in advance.
Posted Wed, 04 May 2022 06:55:45 GMT by HMRC Admin 19
Hi,

Please contact the Stamp Duty Land Tax team for advice.

Stamp Duty Land Tax

Thank you.

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