Author Topic: US property and the implications for UK second home extra stamp duty (+ 5 %)  (Read 31380 times)

s0198362

  • 5 O'Clock Shadow
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I have recently moved back to the UK (dual UK/US citizen), and am starting to house hunt.

The problem is, I already have a home in the USA and am not selling it.  It is currently being rented out.
I am therefore subject to an additional 5% Stamp Duty Land Tax (SDLT) on a home purchase.
"any individual who owns a property outside the UK will be subject to this surcharge if they purchase a new property in the UK"

This has got me considering placing my US property into an LLC over there.  Would that then mean I no longer own a property?  Of course that will come with complications around taxes (whether a US LLC is opaque or not).  I'd probably at this time not withdraw any income from the rental business, just use it to build up for repairs/running costs etc.

If anyone knows of good resources about this complex topic, I'd really appreciate it.

Kwill

  • Magnum Stache
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That sounds like it would be a big headache now and for the rest of your life, just to deal with the LLC paperwork and taxes in both countries. Can you not sell the US one? If you've lived in it recently, the taxes when selling now would be better than if you wait and rent it out for years.