nick farrow
Blogger
Share this content
0
1995

sdlt easy question probably hard answer

sdlt easy question probably hard answer

If individual transfers 3 residential mortgaged investment properties to new limited company is SDLT payable on full market value?

Replies

Please login or register to join the discussion.

03rd Mar 2016 13:30

Yes (assuming the mortgage amounts are less than the market values, and that the individual is the owner of the said new limited company).

Thanks (0)
03rd Mar 2016 14:25

More misery

Hi Nick,

According to Rebecca Cave who wrote an article on this very site purchases in limited companies will attract the new 3% SDLT supplement, as per the recent consultation.

Unless 15 or more properties are transferred / purchased in a single transaction.

Always the bearer of bad news!

Dale.

Thanks (0)
By Ruddles
03rd Mar 2016 14:44

What is not yet clear is how the potential "15 property" exclusion will operate:

If a company has no properties at present but acquires 16 in a single transaction, will the exclusion apply?

What about a company that currently has 16 properties, and buys a further 1?

Or will it apply only to single transaction purchases of 15+ regardless of how many properties are currently held?

Thanks (0)
03rd Mar 2016 14:58

Are those...

Ruddles wrote:

What is not yet clear is how the potential "15 property" exclusion will operate:

If a company has no properties at present but acquires 16 in a single transaction, will the exclusion apply?

What about a company that currently has 16 properties, and buys a further 1?

Or will it apply only to single transaction purchases of 15+ regardless of how many properties are currently held?

... not the questions posed by the consultation? Add in what about non-corporate "large-scale" developers/investors who may also end up being exempt from the additional charge.

Maybe we will know by 23/23 March when the final draft legislation materialises.

Thanks (0)
avatar
03rd Mar 2016 15:53

many thanks Portia Dale & Ruddles

that is what I expected - i hope there is no danger of linking the transactions to trigger an even higher SDLT rate

Thanks (0)
By Ruddles
03rd Mar 2016 16:09

I think there's every chance of linking the transactions - though Multiple Dwellings Relief may then be in point.

Thanks (0)
avatar
03rd Mar 2016 17:45

thanks Ruddles

that's good to know

Thanks (0)
Share this content