Candy Brothers Lose £4m Stamp Duty SDLT Battle with HMRC – How You Can Avoid Making The Same Error?

Candy Brothers Lose £4m Stamp Duty SDLT Battle with HMRC – How You Can Avoid Making The Same Error?

17:17 PM, 26th July 2021, About 2 months ago 1

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Billionaire Candy brothers lose £4m stamp duty SDLT battle with HMRC over the purchase of £68million Georgian mansion after legal loophole forced them BOTH to pay stamp duty.

In this video, Andrew Roberts, fellow property investor and developer and I deep dive into how you can avoid making the same costly mistake.



Comments

by Mark Alexander

9:15 AM, 27th July 2021, About 2 months ago

I think the substantial performance point was a 'no-brainer' on this case, which I have still yet to read fully, but I suspect the legal argument was that SDLT should only have been paid on the first transaction. That too was always a weak argument but the second SDLT charge could have been substantially mitigated with proper planning.

If the first transaction had been through a Limited Company then the SDLT on the sale of the shares in the Limited Company as the second transaction would have reduced the SDLT on that transaction to just 0.5%.

That's nearly a £2,000,000 saving!

But for the sake of a £400 tax planning Consultation fee payable to Property118, Holly could have been enjoying a significantly larger handbag budget this year!

Incidentally, the same SDLT anti-avoidance legislation can also be used positively to avoid the need to refinance at the point of incorporation - see https://www.property118.com/tax/incorporating-property-portfolio-without-refinance/


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