This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

will ltd company formation save sdlt on my 2nd house?

Joined:Thu Oct 24, 2019 11:06 am
will ltd company formation save sdlt on my 2nd house?

Postby xplicit.kaler » Thu Oct 24, 2019 11:22 am

sorry i sound misinformed or lack of knowledge as i am in this situation first time.
i am buying a new residential house and the house in which i am living at the moment will be rented out with new btl mortgage.
new house price is 192k and the house i am living in is valued at 140k
if i go with normal btl mortgage then for the 2nd house i have to pay £7100 sdlt as i will have 2 house on my name
if i form a ltd company and then sell my house to my ltd company at market price ( no cgt as i lived in this house for 5 years) then the new house will be the only house on my name as the old house is owned by company. this will save me extra 5% sdlt on my residential house.
though company has to pay sdlt also.
am i right doing this and will it really save me sdlt?

Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire

Re: will ltd company formation save sdlt on my 2nd house?

Postby jerome.lane » Fri Oct 25, 2019 8:44 am

This is possible and you will pay £1,340 of SDLT on your new home and the company will pay £4,500 for the old one. you will save £1,260 in SDLT but you will also pay extra legal fees, land registry fees and then ongoing costs of operating a company. The saving could quickly evaporate although depending on your other circumstances and lending arrangements, a corporate structure could be useful.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

Return to “Stamp Duty, Stamp Duty Land Tax, SDLT”