SDLT: what you need to know

Stamp Duty Land Tax (SDLT) is a tax that is due by the purchaser on certain property acquisitions in England and Northern Ireland.

The rates of SDLT due on land transactions and the reporting requirements to HMRC depend on various factors. These include whether the property is residential or commercial, the consideration or ‘deemed’ consideration paid for the property, who the purchaser is and if any exemptions or reliefs can be utilised or claimed.

Over the years, we have seen huge changes to SDLT legislation. These changes affect businesses and certain individuals purchasing residential property.

In 2016, HMRC introduced a 3% surcharge, which may apply to certain purchases of residential property by individuals and companies. The surcharge is a huge extra cost for purchasers.

It was also announced in the 2018 Budget that HMRC are consulting on the introduction of an additional 1% SDLT surcharge, which will apply to non-residents acquiring residential property in England and Northern Ireland.

SDLT has become a complex tax leaving some taxpayers and professionals baffled by the intricacies of the rules surrounding it.

We advise on a broad range of SDLT issues, including SDLT planning, compliance and complex development arrangements.

We can provide SDLT advice across a broad range of commercial and residential property arrangements including:

• Residential vs. non-residential
• Mixed use transactions
• Application of multiple dwellings relief
• Application of the surcharge rates
• Application of the reliefs e.g. group relief, charity relief
• Completion of SDLT returns (including amendments and corrections)

With careful planning and structuring, we can help you avoid potential pitfalls and reduce the SDLT risks for a variety of property transactions. We may also be able to review recently completed transactions to ascertain whether there is any scope for a repayment claim where one of the reliefs may be available.

For further information, please contact our property tax advisers.