Are Ltd companies excluded from SLDT relief for 1st Property?

by Readers Question

7 months ago

Are Ltd companies excluded from SLDT relief for 1st Property?

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Are Ltd companies excluded from SLDT relief for 1st Property?

My client has just set up a new Ltd Co with which they wish to buy and manage several rental properties.
They are using a new solicitor to do the conveyancing who is supposed to be an expert in Ltd companies and  buy to let’s.

The Ltd Co has only been in existence 5 days owns no other properties.

My understanding is/was that as long as you individually or a Ltd Co did not own any other property – the higher rate of SLDT was not payable.

The solicitor is saying “In relation to SDLT, the reduction only applies if you are an individual and it is your main residence. It goes on to specifically exclude companies from any relief.”

Is this correct?



Neil Patterson

7 months ago

From HMRC >>

Companies and other non-individuals
The higher rates will apply to the purchase of major interests in one or more dwellings by a company, if Conditions A and B are met in respect of at least one of the dwellings

● Condition A - the dwelling is purchased for chargeable consideration of £40,000 or more;
● Condition B - the dwelling is not subject to lease which has more than 21 years to run on the date of purchase;

5.2 If none of the interests in dwellings meet both Conditions A and B then the higher rates will not apply to the purchase.


7 months ago

Are you saying that a freehold property would not attract the higher rates?

Neil Patterson

7 months ago

No pretty much all residential property unless less than 40k will be subject to the 3% surcharge including the first one for Ltd companies is my reading and general understanding.


7 months ago

Reply to the comment left by Neil Patterson at 11/01/2018 - 15:49
So what does Condition B mean then?

Richard Peeters

7 months ago

So the exemption for companies only applies if (1) none of the properties is less than £40k AND (2) none is on a long lease (>21 yrs). It makes no difference how many the Ltd Co has.

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