Editorial update
The guest article below was originally published in November 2021. Its headline tax figure has been removed because it is not a useful statement of current liability. The original contributor’s general recommendation to obtain transaction-specific tax advice remains relevant; the contributor has not been represented as approving this editorial update.
For an English commercial purchase, distinguish non-residential or mixed-use SDLT treatment from residential treatment. Lease transactions can raise additional questions. Ask your tax adviser to calculate the liability for the actual transaction rather than applying an old headline percentage. See HMRC’s non-residential and mixed-use SDLT guidance.
Guest blog by Sean Randall at Blick Rothenberg
Stamp Duty is a tax on land transactions. The tax treatment depends on the location and nature of the transaction. Specialist tax advice can add real value in cases including:
- The purchase of more than one residential property (possibly a residential property with a ‘granny annex’, staff flat or guest suite)
- The purchase of a mixed-use property (possibly a country property with ‘grazing land’)
- The purchase of a portfolio of residential and non-residential properties
- The purchase of a company owning one or more properties
- The removal of a property from a company to an individual
- The purchase of a residential property by a company
- The incorporation of a property-rental business
- The purchase of a partly developed, damaged or derelict residential property
- The purchase of a building plot from a residential property developer
- The purchase of land and buildings in concurrent or successive ‘linked’ transactions
- The exchange of land or buildings
- The lease of residential or commercial property
- Land pooling arrangements
- Disputes with HM Revenue & Customs (HMRC)
These cases are not necessarily straight forward and the Stamp Duty analysis may be outside the comfort zone of even the most experienced and competent residential property lawyer.
How Sean from Blick Rothenberg can help
Blick Rothenberg is an award-winning tax, accounting and business advisory firm based in London. They cover all UK taxes, including Stamp Duty. The Stamp Duty Partner, Sean Randall, is an award-winning author on the subject, the chair of the leading professional group on Stamp Duty and has over 20 years’ Stamp Duty experience.
He advises buyers, developers and investors of all types, from billionaires to first-time buyers, from global financial institutions to start-ups, from listed house builders to small scale developers, on all types of land and corporate transactions.
The tax is sensitive to understanding both the scheme and purpose of the legislation, the principles established in relevant case law, concepts borrowed from related tax legislation and tax authority practice. For meticulously thought-through technical analysis explained in plain English.
Putting this advice into practice
Start with the property and the decision you need to make. Gather the relevant documents, identify the costs and questions that remain, and agree who will check each point before you commit.
For property-specific support, explore our professional services or commercial valuations and advice. You can also browse current properties.
Read the relevant GOV.UK guidance alongside advice for your circumstances.
Need help with your next step? Speak to the PSS Commercial team about your property, timescale and requirements.