Stamp Duty Land Tax

[Barquentine]

If a company owns residential property can one of the directors of that company (and a shareholder) claim first time buyer relief when he (or she) buys their first residential property?

[Peter Pedant]

blimey no one jumping in
yes deffo

the two are separate entities - the co is independent from the individual as an entity and tax person

this answer presupposes that the question is as is:
and not as is usual on AB
[the company is called a company but was never incorporated or returned a tax return - that it is owned by the OP's sister who is in prison for fraud - and there are cross loans already - and HMRC iss invesstigating all three parties, oh and there is no house]

[Barquentine]

Thanks Mr Pedant. Yes, question is as is. Senior partner is telling client that his membership (with his dad) of their company that owns buy-to-let properties precludes his own 1st time buyer relief. I argued the company is a separate legal entity. This is the son's first property for himself so he can get relief on the SDLT but the partner is adamant he knows best. I researched it and could not find anything to back up said partner's position. I went back and suggested maybe he has assumed the company was an SPV, but no, any director of any company that owns resi-property means those directors (who I assume will also be share holders) get no 1st time buyer relief. I'm just an ever-so-'umble locum so what do I know! Thank goodness the client is going to ask his accountant for tax advice!

[Peter Pedant]

this is quite useful

https://www.whitefieldtax.co.uk/stamp-duty-multiple-dwellings-relief/

whose son is it?
if it is your son you have every right to say - "hold back son!"

if it is someone elses son and it is HIS dad who is giving advice against interest .... I wd butt out to be honest....

which solicitor is conveying the property? they will know as they get sued by the tax man if they step out of line - ( but should bot tell a client to pay tax not due )

[Peter Pedant]

I triedd very hard not to do this

https://www.gov.uk/stamp-duty-land-tax

is the taxman manual on this and er - you can spend the bank holiday reading it if you want !

[Peter Pedant]

sorry I keep on doing this
read the manual and all sort of thoughts might occur to you

including the word ' joint' - lease mortgage title loan debt etc etc

[Barquentine]

Thanks Peter. I actually read the SDLT manual but couldn't find anything to say a company director in a company that owns b-t-l resi properties cannot be counted as a first time buyer when he buys his first resi property for himself. It's a client at a firm where I covered holiday leave. He and his dad own a company that owns btl properties. I'll ask the partner with conduct of that file what the outcome was - the client is checking with his accountant. Thanks for the links - lots of info but nothing directly on point. I searched everywhere.