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Sdlt extra 3% for developers in limited company

Buying a residential property in a limited company costs an extra 3% sdlt. Relief for developing?

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A client wishes to buy a run down cottage in his limited company, do the property up, and then sell it. Hopefully the whole process will take less than a year. He has absolutely no intention of living in it, or letting it out.

when he purchases in his company, he has to pay the extra 3% SDLT, but can he reclaim it when he has evidenced it is just a development?

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By Adam12345
09th Jun 2019 10:02

no

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By Accountant A
09th Jun 2019 10:02

I think reliefs are covered in the HMRC SDLT manual. Alternatively, you could ask the solicitor who will be dealing with the acquisition and disposal.

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Replying to Accountant A:
ALISK
By atleastisoundknowledgable...
10th Jun 2019 08:09

Accountant A wrote:

... you could ask the solicitor who will be dealing with the acquisition and disposal.

As if they’ll know. It’s got the word ‘tax’ in it, don’t most of them say ‘see an accountant’?

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Replying to atleastisoundknowledgable...:
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By Accountant A
10th Jun 2019 17:38

atleastisoundknowledgable... wrote:

As if they’ll know. It’s got the word ‘tax’ in it, don’t most of them say ‘see an accountant’?

Well they'll be the ones responsible for making the SDLT return, presumably, and would they not charge it if the client said "my accountant says no SDLT surcharge"??

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By Justin Bryant
10th Jun 2019 10:01

If it's really run down i.e. uninhabitable, then it may qualify as non-residential.

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Replying to Justin Bryant:
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By Vile Nortin Naipaan
10th Jun 2019 11:00

Bing! Essentially, at the time of the transaction, was the building used or suitable for use as a dwelling? On the limited information in the OP, quite possibly not.

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By Payroll Pete
10th Jun 2019 12:29

https://www.thetimes.co.uk/edition/money/beat-the-stamp-duty-surcharge-h...

As per Justin's comment - get a surveyor to confirm currently uninhabitable

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