Jo White FCA CTA
- Private Client Tax Director
- +44 (0)330 124 1399
- Email Jo[email protected]
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Stamp Duty Land Tax (“SDLT”) is payable when buying property and or land and it has become ever more complex over the last number of years.
With the introduction of the higher 3% rate for the purchase of additional residential properties there are now potentially three SDLT sets of rates that could apply when purchasing a property in your individual name.
Where someone is acquiring a residential property then you need to understand whether they and any joint purchaser owns an interest in another residential property to see if the surcharge rates will apply. The other property could be anywhere else in the world. If you, as the purchaser, are married or in a civil partnership then the properties owned by the other party to your relationship will need to be considered also.
If you are purchasing a residential property with a large amount of land or another type of property in situ then it may be considered non-residential for the purposes of SDLT. This is especially beneficial should you be subject to the higher 3% rates on initial review.
There are some planning opportunities that can be considered when assessing the amount of SDLT that is due on a transaction:
The key to ensuring you are paying the correct SDLT liability is to properly review the transaction taking place and the circumstances to which the property is being acquired.
As a taxpayer you have 12 months to amend an SDLT return from its submission date, thereafter any overpaid SDLT may not be recoverable. With the filing date now being only 14 days from the date of completion (in most circumstances) the deadline for review has reduced. Our recommendation is to review the transaction ahead of completion to ensure that the SDLT return is submitted on the correct basis initially. This will require some upfront work but will likely save you time and cost in the longer term.
If you would like to discuss this topic in more detail, please contact Jo White on email here, or call her on +44(0)330 124 1399.
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