In light of Covid-19, the Government has introduced new temporary rules on Stamp Duty Land Tax in England and Northern Ireland. As of July 2020, you are not required to pay Stamp Duty Land Tax on residential properties of up to £500,000. These rates will remain in place until 31st of March 2021. Find out more information here.
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.
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, you can claim Multiple Dwellings Relief. 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.
The Stamp Duty relief is not applicable to the transfer of a freehold reversion or headlease where a dwelling has a lease of 21 years or more. The rate of tax charged for freehold reversions, headleases or any other non residential properties is set at the usual rate.
If the number of dwellings decreases within 3 years of the transaction, you may need to recalculate the tax and fill in another return.
Companies can claim SDLT relief within the same group that buys or sells property to or from each other. However, conditions apply to Group Relief SDLT. The buyer and seller will both need to be registered companies and be members of the same group at the effective date of the purchase.
Stamp Duty Land Tax relief may be claimed by charities that buy land and property for charitable purposes. 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.
This is a specific Stamp Duty Land Tax relief for bodies with 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.
Stamp Duty reliefs and SDLT exemptions are subject to constantly changing rules and legislation. CapEx Associates will help you recognise and utilise the possibilities for SDLT relief prior to your property purchase.Get in touch