Stamp Duty Land Tax Relief
In its essence, tax relief is any program or incentive, which reduces the amount of tax payable by an individual or business entity.
Certainly, the most popular form of Stamp Duty Land Tax relief is the relief for first-time buyers, which was introduced in 2017. The relief applies to purchases following 22 November 2017 if the residential property’ value was of £500,000 or less. The property has to be intended as a main occupational residency for the buyer. Individuals may be eligible for Stamp Duty Land Tax (SDLT) reliefs if they’re buying their first home and in certain other situations. These reliefs reduce the amount of tax paid on the property.
To claim the relief an individual must complete an SDLT return, even if no tax is due. CapEx Associates can offer help with claiming SDLT relief for individuals as well as businesses.
Multiple Dwellings SDLT Relief
When you purchase more than one dwelling where a transaction or a number of linked transactions include freehold or leasehold interests in more than one dwelling, then a Multiple Dwellings SDLT Relief can be claimed. The claim will have to meet certain criteria to be approved, and the minimum rate of tax under the relief is 1% of the amount paid for the dwellings.
SDLT Relief for Transfer of Property Between Companies
Companies can claim relief within the same group that buy or sell property to or from each other. However, conditions apply to SDLT Group Relief. The buyer and seller will both need to be companies, and be members of the same group at the effective date of the purchase.
Stamp Duty Land Tax Relief for Charities
When charities buy land and property for charitable purposes, and as long as certain conditions are met, they can claim relief from SDLT. The HMRC, however, can withdraw relief, if the charity owning the property stops being a charity or stops using the property for charitable purposes within 3 years of purchase.
SDLT Relief for Compulsory Purchases
This is a specific Stamp Duty Land Tax relief for bodies, which have the legal power to compulsorily buy land or property from individuals. Such bodies can still claim even if the sale is not made under those powers, as long as the sale allows for development by a third party.
How to Claim SDLT Relief?
Stamp Duty Land Tax reliefs and exemptions are subject to constantly changing rules and legislation.
CapEx Associates will help you or your business recognise and utilise the possibilities for SDLT relief prior to your property purchase, or claim an SDLT refund if you’ve overpaid tax for a property you already own. Contact us today to find out more.