SDLT Higher Rates
Don’t Get Caught by SDLT Higher Rates
Deputy Prime Minister Angela Rayner: Don’t Get Caught by SDLT Higher Rates
When buying a new property, it’s crucial to know which properties count for the higher Stamp Duty Land Tax (SDLT) rates.
You must work out how many residential properties you or anyone purchasing with you will own on the day of your new purchase.
If either you or anyone purchasing with you will own or part-own or have an interest in more than one residential property worth £40,000 or more, the higher rates will apply—unless an exemption is available.
Properties That Count for SDLT Higher Rates:
- A property owned on behalf of children under 18 – Parents are treated as the owners even if held in a trust and they are not the trustees.
- An Interest as a beneficiary of a trust – Any property you benefit from in a trust
- Your current home – If you still own it when you buy your new home.
Deputy Prime Minister Angela Rayner’s resignation highlights the consequences of not getting it right: her Hove flat triggered the higher rates of stamp duty land tax because her previous home was in a trust, and she was still treated as having an interest in it.
Key Takeaway: SDLT rules are strict. Trusts and multiple property ownership can trigger higher rates Professional Tax advice is essential before purchasing a new property.
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If you would like further advice in relation to the fees incurred when purchasing a property please do not hesitate to contact Kerseys Solicitors in Ipswich at [email protected] or telephone 01473 213311, Kerseys Solicitors in Felixstowe at [email protected] or telephone 01394 834557, Kerseys Solicitors in Woodbridge at [email protected] or telephone 01394 813732, Kerseys Solicitors in Colchester at [email protected] or telephone 01206 584584 where a member of our Residential Property team will be happy to speak with.
