If you are buying UK property, shares or a business, you may be liable for stamp taxes. In addition, if you own residential property in a company valued in excess of £500,000 you may be subject to the Annual Tax on Enveloped Dwellings (ATED) charge.
Stamp taxes can be notoriously complex, and often forgotten, but they can represent a significant cost.
How can we help you?
- Review property transactions to determine whether the SDLT liability can be reduced
- Advise on ATED and help with annual reporting
- Advise on other tax implications of the acquisition of property or land.
- Obtaining clearance from HMRC before entering into a transaction where appropriate
- Help you to meet your compliance obligations.
Client case study 1
SDLT advice on the new 3% surcharge for additional residential properties
Background: We were approached for SDLT advice in connection with a new property purchase. Our client owned a property personally which they had lived in with their partner for many years. The partner owned a rental flat solely in their name.
The couple wished to jointly purchase a new property to live in and sell the house they were currently living in. This, however, would have triggered an additional 3% SDLT liability on the entire property value by virtue of the partner not having a share in the main residence and owning a separate property.
How we helped: Without our help, additional SDLT of £9,000 would have been due under the new 3% surcharge rules. As a result of our advice, the client was able to change their position, saving them from paying this additional SDLT.
Client case study 2
SDLT savings on incorporation
Background: We were approached for a second opinion on the SDLT implications of transferring properties held in a partnership to a company owned by the same partners. The (now) client had been told by their incumbent advisers that SDLT would apply on the transfer.
How we helped: We applied for and received clearance from HMRC that the transfer would not be subject to SDLT, which resulted in us saving the client £260k in SDLT that they would have otherwise paid.