For Business

Stamp duty land tax advice for farming businesses

Stamp duty land tax (SDLT) can be a significant cost on property transactions. This is particularly relevant to farming businesses.

Partnership transactions

Where a farming business is run as a partnership, the transfer of property into or out of the partnership should be reviewed to ensure that it does not result in an SDLT cost, as the relevant rules are complicated.

This is especially relevant where some of the partners are not from the same family and will not be regarded as connected for SDLT purposes.

Property acquisitions

When a property acquisition involves residential property, the transaction should be reviewed to ensure that the correct rate of SDLT is paid. Where farmland is also being acquired, what is known as mixed use may be established, which is likely to reduce the rate of SDLT. In addition, where the transaction involves more than one residential property, claiming multiple dwellings relief may also reduce the total SDLT payable.

Hazlewoods has SDLT specialists who can advise on property transactions to ensure that the SDLT cost is minimised.

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