Stamp duty holiday and Companies and Landlords

The Stamp duty holiday from 8th July 2020 until March 31st 2021 is a very welcome boost to the housing Market.

At Websters Surveyors, we’ve noticed a significant upturn in market activity even in the week since the holiday was introduced. The number of Home Survey requests is increasing as the number of other instructions. After a quieter few months during lockdown, the increased activity is also very welcome.

For anyone who has been hiding under a rock for the last week, the stamp duty holiday is actually a term being used to show a reduction in the level that Stamp duty comes in at, temporarily increased to £500,000.

For example someone buying at £400,000 would have previously paid £10,000. Now it’s nothin!

At £500,000, it previously would have been £15,000. Now it’s nothing!

At £600,000, it previously would have been £20,000. Now it’s only £5,000.

There are two situations though that there seems to be some confusion from people calling us, so we’re using this article to explain –

  1. What about Landlords and second homes?
  2. What about transferring property into a Company name?

Landlords and Second homes

The 3% surcharge for stamp duty still applies.

Landlords are able to benefit from the same stamp duty saving that homeowners buying their main home have, but they’ll still pay the additional 3%.

For example, someone buying at £400,000, would pay £12,000, rather than £22,000.

At £500,000, it previously would have been £30,000. Now it’s £15,000.

At £600,000, it previously would have been £38,000. Now it’s £23,000.

Putting an investment property into a Company name

The debate over whether it’s better to own property in a personal or a company name is age old and will rumble on for many years no doubt. The short answer on whether it’s right for you or not and whether it would save tax payable is that it depends on your personal circumstances. Speak with a tax advisor such as an Accountant for professional advice here.

However, for those who want to transfer property from a personal name to a company name, some may have been put off by stamp duty implications of doing so in recent years. After all, transferring to a company name is a transaction so does attract Stamp duty land tax.

For now though, or at least until March 31st 2021, Stamp duty land tax for residential properties transferred into company names (or any other transaction) has been reduced.

Put simply, if you’re planning on transferring property into a company name, it might be a good time to do so. You could save some stamp duty.

If you do though, your accountant or other tax advisor may also suggest that you need a Capital Gains tax Valuation report for the date of transfer. Please do talk to us here as this is something we can provide you with. A report done properly will be RICS Red Book compliant to satisfy HMRC’s requirements. That’s why it tends to be Chartered Surveyors and RICS Registered Valuers (we are both) who undertake these reports rather than Estate Agents.

As always, if there is anything the team at Websters Surveyors can help you with, please give us a ring and we’ll be happy to talk through what can be done.

Dan Knowles MRICS


15th July 2020