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Harris
Harris, Law Specialist
Category: Law
Satisfied Customers: 2732
Experience:  Family Law - Specialist in Divorce, Financial Relief and Children Matters
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I am the director and my wife is a shareholder of my limited

Customer Question

I am the director and my wife is a shareholder of my limited company. If my company buys my house and then rents it, would I be free of ownership and then be able to take advantage of the government help to buy scheme 20% equity loan on a new property
Submitted: 11 months ago.
Category: Law
Expert:  Harris replied 11 months ago.

Hi, thank you for your question. Under the terms of eligibility for the government equity loan Help to Buy scheme, this is available to homeowners looking to move but there will need to be confirmation that you have disposed of your previous home and there may be scrutiny over whether the true beneficiary of your old home is yourself and if the company purchasing the property is to entitle you to the Help to Buy scheme.

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Customer: replied 11 months ago.
The company provides our sole income, is this a loophole more importantly one worth following
Expert:  Harris replied 11 months ago.

Legally, the company will be owning the previous property, but as the company is yours it may be seen as a "loophole" to circumvent the eligibility requirements for the Equity Loan and it will need to be scrutinised by the government department and the decision is for them to make - there does not appear to be clear guidance regarding such a specific arrangement but it appears risky.

Customer: replied 11 months ago.
When making a declaration to a solicitor on property ownership for stamp duty (or a scheme like help to buy) do you declare all properties you have anything to do with or just the ones you own in your name?
Expert:  Harris replied 11 months ago.

You should be disclosing all properties you have an interest in as otherwise if it is later found that you should have disclosed a certain property and did not it could amount to fraud or misrepresentation

Customer: replied 11 months ago.
If buying a second property can you choose which one you pay the standard stamp duty on and which one you pay the higher rate, the new property is worth more than my current, so I would prefer to pay the higher rate on transferring my current property to my company, and the lower rate on purchasing my new home
Expert:  Harris replied 11 months ago.

You can only pay standard SDT on the property that is directly replacing your current main residence