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3% SDLT rise

3% SDLT rise

Hello,

I have just read the ICAEW's response to the governments consultation on the SDLT rise, they have raised some very good points in their stance.

I was wondering if any one has come across this situation, say a husband and wife own a small portfolio of properties, some owned jointly and some individually. Lets say a property which is owned 100% by Mrs is to be transferred to into 50:50 ownership with Mr, ie into joint names with no cash consideration. Normally no SDLT will be due, in this scenario however will the 3% still apply?

Thanks

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By JimFerd
25th Feb 2016 16:25

I can't imagine that it would - with there being no consideration.

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25th Feb 2016 17:15

Hi Jim,

Thanks for that, that was my initial thought however I could not find confirmation of this any where.

Cheers

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25th Feb 2016 17:29

What do you think the extra 3% will be due on?

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By MBK
26th Feb 2016 14:06

@PNL ..

... SDLT could be due on any mortgage liability assumed by the husband, could it not?

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26th Feb 2016 14:31

@MBK I agree. The OP appears to be considering the point where there is no consideration, and is asking whether the 3% applies. My point is simply that 3% is a percentage, and, as such, must be 3% of something before it can apply, making the question ridiculous.

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26th Feb 2016 16:17

Only individuals with a number of properties are affected by the potential rise, so I was wondering if the additional 3% charge would apply in this case, as we know SDLT currently doesn't apply in this situation. So if it was to be applied it might be 3% of market value. Hence my query on this forum.

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03rd Mar 2016 18:43

Only individuals

Is it clear that it is only individuals that are affected?

I have a client that owns 12 properties via a company and are planning on increasing the number this year all still owned by the limited company, so would they be affected by the addition SDLT?

Many thanks

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By MBK
04th Mar 2016 07:32

There is nothing in the consultation ...

.... that says the rise is restricted to individuals. And I've not seen anything since the con doc was issued to suggest any change in that.

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By JimFerd
04th Mar 2016 09:17

James - See section 2.2

https://www.gov.uk/government/consultations/consultation-on-higher-rates...

It's just a consultation document though.

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