Finding your way through the maze of Stamp Duty Land Tax

When browsing through the SDLT HMRC Calculator, I noticed that it does not contain a question as to whether the purchaser has a child under the age of 18 and if so, whether such child owns a major interest in a property. This is of course relevant as s 4ZA of Finance Act 2016 treats any such purchaser as having an additional property themselves.

Therefore, say you or your spouse do not own a property at all. You decide to buy a Buy to Let as you do not wish to buy a main residence yet. Under normal circumstances, as this is your first property, you do not pay a SDLT surcharge and SDLT is payable at normal rates. However, if your child has a property (and this includes a share in a property if that share is worth over £40,000.00), the property you are buying would be surcharged.

In conclusion, please seek specialist professional advice. At GoodLaw Solicitors, you will receive such advice from a qualified lawyer. If I can be of any assistance, please contact me, Janek Malysko, Associate Solicitor at GoodLaw solicitors on jmalysko@goodlawsolicitors.co.uk or 01273 953 270.

Disclaimer:

I hope you will find this article helpful. It is not intended to give any legal advice and it is only intended to demonstrate that SDLT rules are very complex and HMRC published Guidance and Calculator is not always entirely accurate (i.e. in trying to be user friendly, it doesn’t always follow the language used in the actual legislation). The rules are very complex indeed. I would always recommend speaking to HMRC or writing to them if in any doubt about SDLT.

For full legal advice in relation to your residential or commercial property issues, please contact Janek Malysko at GoodLaw Solicitors.

Sources: HMRC, Schedule 4ZA of Finance Act 2016, MBL Residential SDLT- Advance Guide for Conveyancers written by Paul Clarke of Cripps Harries Hall.