The Property Podcast ASK493: Should I sell to avoid a big stamp duty bill? PLUS: Am I made to buy 4 HMOs?
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Sep 9, 2025 This episode addresses a listener's dilemma about selling a buy-to-let to avoid a hefty stamp duty bill. The hosts discuss the pros and cons of transferring properties into a limited company and the implications of higher taxes for first-time homebuyers. Another listener from Hong Kong explores investing £300,000 in student rental properties upon returning to the UK, seeking advice on managing expenses and cash flow from multiple HMOs. The conversation is filled with insights on navigating property investment complexities.
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Don't Rely On Loopholes Or Quick Company Transfers
- Avoid chasing alleged loopholes to escape stamp duty because HMRC actively closes and enforces against them.
- Consider the upfront tax, remortgage and admin costs before transferring a personal property into a limited company.
Pay The Stamp Duty If It’s Affordable
- Accept the extra stamp duty if you can afford it and avoid risky workarounds that HMRC may challenge.
- Moving a personal buy-to-let into a company or selling it creates other real costs and complications that often outweigh the benefit.
The Extra-Home Surcharge Is Usually One-Time
- The higher stamp duty for owning a buy-to-let is effectively a one-time hit when you buy your first main residence after already owning a rental.
- If you later sell that residence and buy another main home, the extra rate won't apply to the new purchase in the same way.