Does the increased stamp duty apply if a limited company purchased after April?

Question

Answer

Yes, and no… It entirely depends how many properties your limited company already owns.

Controversially, the higher rate of stamp duty will NOT apply to you if you have 15 or more properties in a limited company structure. However, if you are looking to buy your first property in this way, or add to a smaller portfolio, you will still be due to pay the increased 3% rate.

If you have not already formed a limited company, consider that owning a property in this format is not always the easiest option.

If you already own properties, you will have to transfer then into the company, which could result in a capital gains bill and further stamp duty fees when the property’s ownership is transferred to becoming an asset of the company. You will also incur more significant annual accounting costs and requirements.