SDLT . Confused about new rates

SDLT . Confused about new rates

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Trying to get my head around companies/non-natural persons buying residential properties and am confused.

Previously if value was over £500k- rate was 15%, unless a property developer where relief was available if qualifying conditions were met-so paid at the normal rates.

 With the new rules as I understand it, all companies are subject to the additional 3% surcharge.

 

So under the new banding system a company acquiring residential property for say £500k- the rate is 8% which seems a good deal.

 

However reading question 24 and 25 of the HMRC guidance notes issued on 16th March it implies the 15% rate is still around?

 

I would appreciate any help and guidance.

Replies (6)

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Portia profile image
By Portia Nina Levin
07th Apr 2016 15:00

New SDLT rates
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By Martin B
07th Apr 2016 15:15

Portia Nina Levin

Nice one- I am sure you can help here!

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By Martin B
07th Apr 2016 15:19

Portia Nina Levin

Nice one you made me laugh- I am sure you can help here! Please do.

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By Portia Nina Levin
07th Apr 2016 15:32

Well...

... the new rates (under FA 2003, section 55) apply unless the higher (15%) rate (under section 55A and Schedule 4A) applies. The 15% rate continues to apply where it applied previously.

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By Martin B
07th Apr 2016 16:23

Portia Nina Levin

Thanks I am trying to follow

So 15% rate is only applicabe for company acquisition of residential property over £500k and owner occupied

So if a company acquires a residential property for development for say £985k the Hmrc SDLT calculator comes up with £71,800, which is what I would expect based on the new additional rate banding. Or should it be at the standard rates excluding the 3% surcharge? and following on from above at  15% £147,750, if owner occupied.

Am I on the right lines?

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By Portia Nina Levin
07th Apr 2016 16:39

The answer is £71,800 if you

The answer is £71,800 if you will be developing, and £147,750 if not used in a property business or as stock in a development business.

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