Tax
Stamp taxes, SDLT & LTT
If you are buying UK property, shares or a business, you may be liable for stamp taxes including stamp duty land tax (SDLT) in England and Northern Ireland or Land Transaction Tax (LTT) in Wales. 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. We have the knowledge and expertise to review and advise on your individual situation.
How can we help you?
- Review property transactions to determine whether the SDLT or LTT 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
What is ATED?
A company or other non-natural person holding a residential property with a value in excess of £500,000 is subject to the annual tax on enveloped dwellings (ATED) rules.
ATED is an annual tax, with the charge being based on the valuation of the property. 2022 was a revaluation year requiring properties to be revalued as at 1 April 2022 to determine what band the property will fall in/whether the rules apply for periods on or after 1 April 2023. Not all properties are subject to the charge as certain exemptions and reliefs apply but a return may still need to be filed, with penalties applying for failure to do so.
Client story
SDLT advice on the 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.
