Lay My Hat

Has anyone bought a house to rent out through a limited Company that already exists - in Scotland if that makes a difference

We own a telecoms business but would like to buy a holiday home and adapt it for wheelchair users - our 14 year old son uses a wheelchair full time so it might be heart over head.

If buying for around £160/ 170,000 could you tell me the sort of buying fees - I think we would pay land tax on the bit over £145,000 and then another tax as bought through a ltd? Any thing else I am missing?

If someone could point me in the direct of some information that relates to this that is aimed at Scottish businesses and tax etc that would be fab as I have read through a million today and they turned out to be English taxes etc and now my brain is fried

I can’t help with the tax situation, but just to say don’t be put off. Your sons circumstances will give you expert and detailed knowledge about how to set up great holiday accommodation for a group of under served and well deserving guests.

Best of wishes and good luck with your venture. I’m sure you will get some knowledgeable replies from the forum.

For £160,000, you're £300 in LBTT (land and buildings transactions tax, the Scottish stamp duty) and then possibly another £4,800 in ADS (additional dwelling supplement), as limited companies have to pay it too. What you'll need to check with an accountant is whether properties you, as (I assume) the individual directors of the company own, count when calculating whether or not a purchase is liable for ADS. I would think they must do, otherwise people would simply start a new company for each house purchase.

LBTT calculator here: https://www.revenue.scot/land-buildings ... calculator

LBTT and ADS guidance: https://www.revenue.scot/land-buildings ... l-dwelling

The more common way of doing it is to set up a new Ltd Co and get your existing company to lend the money across. Sometimes if you need finance, the bank insist on an SPV.


The taxes wont be hugely different application from the English. There was a recent article that said Scotland were having to refund loads of stamp duty as they had applied the additional stamp duty incorrectly.

There are still differing opinions on how you define a dwelling however you are very likely to pay it.