How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Expert Lu Your Own Question
Expert Lu
Expert Lu, Business Consultant
Category: Tax
Satisfied Customers: 124
Experience:  ACCA Diploma
Type Your Tax Question Here...
Expert Lu is online now

I want to buy a property and develop it into 3 flats, then,

This answer was rated:

Hello, I want to buy a property and develop it into 3 flats, then, rent the flats out for a monthly income. Money and tax wise what is the best way of do it? I'm thinking on buying the property with a mortgage, and with 3 remortgages, pay back my first lender and keep on paying monthly these 3 new mortgages. Is there any way of getting government aid to do this? How can I transfer the properties/put them under my company for tax purposes without paying stamp duty?

Hello ,I am an expert with Just Answer and I am pleased to assist you with your question . I am currently reviewing your question and I will get back to you .

Thank you in advance

Thank you for your patience , after reviewing your question , depending on your financial position , the best advice is to go the mortgage way , unfortunately there is no government aid to assist on this .If you do transfer the properties into the company the company will be liable for stamp duty and you will also be liable for capital gains tax , this has great implications.

Please kindly feel free to ask if you need me to clarify my answer .

All the Best

Customer: replied 12 days ago.
what happens if I keep the 3 flats under my personal ownership and run them personally? I would be buying 1 house, redeveloping to 3 flats and renting these flats out for a monthly income. Is there SDLT involved on doing this?

Hello, thank you for your patience , you will be charged SDLT on the purchase of this house , It will also depend on when you want to purchase the property as there is still SDLT holiday till the 31 of March. If you keep the 3 flats you will only be taxed on rental income you receive.

I hope that answers your questions .

I am glad I managed to help.

All the best

Expert Lu

Expert Lu and other Tax Specialists are ready to help you