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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5231
Experience:  FCCA FCMA CGMA ACIS
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Assistant: What is your issue regarding? Tax implications

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Hi
Assistant: Hello. What is your issue regarding?
Customer: Tax implications and options of buying a second house in UK
Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I own a property in UK which was our main residence. But we rented out our property ( have consent to let from the mortgage lender) as we had to move to a London for career reasons. We are now planning to buy a house in London and use it as our main residence. Financially I can affordto keep the first house while I buy the second but as per the new rules the SDLT on the second house becomes quite high also I need to consider the tax implication from the 1st property rental income. Would like some advice on what is the best way to progress:?
1.Should I dispose off my first property? ( I would like to keep it if I can make financial sense of it)
2. Should I transfer my house ownership to my wife?
3. Should move the house into a company ownership?
Would you be able to advise on what the best option would be for me.
Assistant: Is there anything else important you think the Accountant should know?
Customer: i think the above information should be enough

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

1. The Stamp Duty Land Tax (SDLT) Surcharge is 3% on the whole value of the new house you buy. If you dispose of on or other within three years you can apply to the Stamp Office for a refund. It would probably be better to retain it if it is financially and administratively viable.

2. Why? What tax advantages do you hope to achieve? Spouses have only one tranche of Private Residence Relief (PRR) between them.

3. You could and any Capital Gains Tax (CGT) liability would be deferred by Incorporation Relief (IR) until you disposed of the shares in the company. Alternatively PRR is extended for 4 years in the even of a move for employment reasons. This will give you a little rattle room.

Without quantative data I cannot go much further.

Customer: replied 4 months ago.
Thanks for the response, Whats the best way to share with you the quantitative data?

It;s entirely a peresonal problem and frankly as long as the proverbial piece of string. the whole thing hinges on the retention of the old house and the effects of CGT. Also your stay in London time wise has an effect.

bigduckontax and other Tax Specialists are ready to help you

From long experience I think you will find it easier to ring me I am on 01750 725420.

Customer: replied 4 months ago.
Hi,
Are you available to talk now?
Thanks