Multi-Sale SDLT?

by Readers Question

13:44 PM, 25th February 2020
About a month ago

Multi-Sale SDLT?

Make Text Bigger
Multi-Sale SDLT?

I’ve sent the recent article to my account as I have a building in 10 separate units let on ASTs as it reads as though this qualifies for the reduced SDLT – I even called the Inland Revenue who said ‘sounds as though it does’ and sent me the links for this area.

It doesn’t actually say in this info that it includes HMOs (which this building isn’t) – has anyone any experience of this as my accountant is doubtful that I meet the criteria.

Many thanks

Harlequin Garden



Comments

Neil Patterson

13:48 PM, 25th February 2020
About a month ago

Hi Harlequin Garden,

Did you mean this recent article by Mark Smith (Barrister-At-Law) >> https://www.property118.com/hmo-purchase-stamp-duty-was-only-one-percent-why/

Stamp Duty relief on properties split into multiple dwellings

The HMRC manuals state:-

You can claim relief when you buy more than one dwelling where a transaction or a number of linked transactions include freehold or leasehold interests in more than one dwelling.

If you claim relief, to work out the rate of tax HMRC charge:

divide the total amount paid for the properties by the number of dwellings
work out the tax due on this figure
multiply this amount of tax by the number of dwellings
The minimum rate of tax under the relief is 1% of the amount paid for the dwellings.

Source: https://www.gov.uk/guidance/stamp-duty-land-tax-relief-for-land-or-property-transactions#sdlt-relief-for-multiple-dwellings

Mark Smith (Barrister-At-Law)

22:15 PM, 26th February 2020
About a month ago

Happy to advise and point your accountant/ conveyancer in the right direction

John

9:14 AM, 27th February 2020
About a month ago

I am looking to buy a similar property. One freehold house, converted into 8 flats.

One conveyancer says the stamp is £28k.

Another switched on conveyancer says it is £14k with the multi buy relief OR £13k if treating it as a commercial purchase over 6 units.

Super complicated and i would say do more research and find a conveyancer who knows the rules properly.

Michael Holmes

9:31 AM, 27th February 2020
About a month ago

I would hurry up, I get the impression all these crazy reliefs are going to be drastically pruned in the next budget, at least the tax system needs to be simplified if the Tories have any sense at all. Always a doubtful scenario I know.

John

9:35 AM, 27th February 2020
About a month ago

Yes, i can also see this happening and so what will happen is that house prices will jump upwards if SD is lowered. Sellers maybe hold on, but buyers need to get it done.

Harlequin Garden

10:21 AM, 27th February 2020
About a month ago

Reply to the comment left by Mark Smith (Barrister-At-Law) at 26/02/2020 - 22:15
Thank you I've tried to find you details, can you point me in the right direction for them please.

Thanks

reader

14:01 PM, 27th February 2020
About a month ago

Yes entirely agree my solicitor was unaware of the relief but sought HMRC approval and the figure for SDLT was significantly reduced but the forthcoming budget may change things, may be.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

CERTAINTY Amidst Chaos LettingSupermarket.com Covid-19 Update

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More