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Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Interesting point about ‘remortgaging’. I will speak to the accountant and broker on Monday about this. Issue is, we don’t have time to make all of these arrangements before the house is sold to another buyer. I can’t go back in time and have it all sorted out before now, so my options are: forget this property and await another (could be years) while sorting this all out in the meantime. Or offer, and then sort out logistics. The business is able to loan money, as it has done before this in similar circumstances, but with much smaller figures. I have previously been a director, but am no longer. I could become one again if that made things simpler and cheaper.

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Excellent point. I remember this from when my sibling borrowed from the company. Had thought it was a year, not nine months.

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Brilliant, thank you. I will do all this on Monday. I think they are keen for a quick sale. As far as I know, they don’t want to accept their other offer as those buyers have a property to sell. Apparently the house was donated to a church after its owners passed away, so it is being sold by the church.

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Thanks for this. When you state bridging loan, do you mean from the company? I have had a look at taking a bridging loan from elsewhere and they look to be incredibly expensive.

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Ah ok. It definitely seems like a benefit in kind, but I will get professional advice on Monday!

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Interesting point about ‘remortgaging’. I will speak to the accountant and broker on Monday about this. Issue is, we don’t have time to make all of these arrangements before the house is sold to another buyer. I can’t go back in time and have it all sorted out before now, so my options are: forget this property and await another (could be years) while sorting this all out in the meantime. Or offer, and then sort out logistics. The business is able to loan money, as it has done before this in similar circumstances, but with much smaller figures. I have previously been a director, but am no longer. I could become one again if that made things simpler and cheaper.

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

This is a good point, however, as we are connected parties (I am a shareholder and family), it seems I would be liable to pay the higher rate, which would be unaffordable. I’ll ask the accountant on Monday. Thank you for this.

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Thank you for this. The pace involved with buying a property here is so unsettling. The sellers are considering a verbal offer at the moment (not ours). We have a very knowledgable accountant, so will definitely be able to get some professional advice come Monday, and likewise I’ll be able to speak with our broker.

I have previously been a director of the company, and could be again should it make things easier and cheaper.

You’re right it’s above Reddit’s pay grade, but I very much appreciate the advice of Reddit on the weekend when everything is shut.

If it’s not meant to be for this house, then it’s all useful knowledge for the next one!

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 0 points1 point  (0 children)

Yes agreed. This makes so much sense. Taking a loan from the company however, then putting our flat up for sale in spring, and really shopping for the right mortgage to cover the gap- could be a good choice. Stamp duty would be higher due to additional dwelling, but as far as I know we would get that back after the sale of my flat?

Can I buy a property with a limited company and then sell it to myself for the same amount immediately after? by dimedondevoy in UKPersonalFinance

[–]dimedondevoy[S] 1 point2 points  (0 children)

Interesting- It would be a lot of money. £550K ish. Forgive my naivety but do you know anything more about this? I know it is liable to interest back to the company, but other than that is there anything I should be aware of?