Tag Archives: Stamp Duty Land Tax

ILN Today Post

Top tips for tenants: Stamp Duty Land Tax (SDLT) and Value Added Tax (VAT)

Benjamin Franklin (1706-90), in a letter to Jean-Baptiste Leroy in 1789, wrote the now infamous words “In this world nothing can be said to be certain, except death and taxes”. Whilst the former (thankfully) is outside of the scope of this article, the latter (sadly) is not and should be at the forefront of a tenant’s mind when taking a lease of new premises or re-gearing an existing lease.

In this article we will be looking at some typical transactions involving tenants, the SDLT and VAT implications of each of them and some practical tips/considerations.  Before we begin, it is worth setting out a brief overview of SDLT and VAT.

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ILN Today Post

The best Christmas present for your family: a discretionary trust?

This article is taken from Helena Luckhurst’s blog The Wealth Lawyer UK.

It’s beginning to look a lot like Christmas out there, as Bing says. Thoughts turn to what gifts to give our family. When it comes to making big gifts to family members, though, in lifetime or on death, still not enough people think of using a trust.

Many people hardly know what a trust is; still less understand what a trust can do for their family. Discretionary trusts (or, to be precise, their trustees) can be taxed without reference to the personal tax positions of the beneficiaries and, if desired, that of the person(s) funding the trust. The fact that trusts are taxable in their own right can be very useful for family tax planning.

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Higher SDLT rates for additional residential purchases: planning points

Here we are in the brave new world of higher Stamp Duty Land Tax (SDLT) rates for certain residential property purchases.  As from 1 April 2016, anyone buying an additional UK residential property, such as a second home or buy-to-let, faces paying a surcharge of 3% above the standard SDLT rates (see my blog of 14 January 2016 for further details of the changes as they were announced in the Autumn Statement 2015).

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ILN Today Post

New Stamp Duty Land Tax proposals – a market changer?

In the Autumn Statement last month, the Government proposed that purchases of additional residential properties in England, Wales and Northern Ireland should be subject to an extra 3% Stamp Duty Land Tax (SDLT) on top of the standard SDLT rates. All types of residential property will be caught – second residences, buy-to-lets or furnished holiday lets – unless worth under £40,000.

The key test of whether the new rules will apply is this. If, at the end of a day in which an individual purchases a residential property, that individual owns two or more residential properties and the purchase was not replacing their main residence, the additional 3% SDLT will be due. The main exception to this (for home-owners) is if the individual was purchasing a main residence and can demonstrate that a previous main residence was sold within 18 months of the purchase.

 

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New Stamp Duty Land Tax proposals – a market changer?

In the Autumn Statement last month, the Government proposed that purchases of additional residential properties in England, Wales and Northern Ireland should be subject to an extra 3% Stamp Duty Land Tax (SDLT) on top of the standard SDLT rates.  All types of residential property will be caught – second residences, buy-to-lets or furnished holiday lets – unless worth under £40,000. 
 
The key test of whether the new rules will apply is this.  If, at the end of a day in which an individual purchases a residential property, that individual owns two or more residential properties and the purchase was not replacing their main residence, the additional 3% SDLT will be due.  The main exception to this (for home-owners) is if the individual was purchasing a main residence and can demonstrate that a previous main residence was sold within 18 months of the purchase.
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