What is a linked transaction for stamp duty?
When 2 or more property transactions involve the same buyer and seller, they count as ‘linked’ for SDLT . HMRC may count people connected to a buyer or seller as being the same buyer or seller. This may mean that they pay a higher rate of SDLT than if the transactions are counted individually.
What is a linked property transaction?
Linked transactions are those which form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them. Just because two transactions are between the same purchaser and seller does not necessarily mean they are linked.
How is SDLT calculated on linked leases?
SDLT on successive linked leases is calculated as though the series of leases were one lease granted: at the time the first lease in the series was granted; for a term equal to the aggregate of terms of all the leases in the series; and. in consideration of the rent payable under all of the leases in the series.
Do you have to pay stamp duty if you own 2 properties?
Buy-to-let stamp duty and stamp duty on a second property If you’re buying a new home and selling your old one, you’ll only need to pay the standard stamp duty rates. If you do not sell your main property when you complete your new home, you’ll have to pay the higher rates. This is because you’ll own two properties.
Is the purchase linked to the sale of another property?
It is very common in residential conveyancing transactions that the client is selling one property and buying another. In such circumstances, it is possible that the sale and purchase transactions are linked to each other. It is the duty of the conveyancers to ensure that such a situation does not arise.
Is stamp duty payable on transfer of property between spouses?
If you transfer a property to your spouse or civil partner there is no specific stamp duty relief for the transfer unless you are separating or getting divorced.
What is the current rate of stamp duty in UK?
Stamp duty rates (England & Northern Ireland)
| PURCHASE PRICE | RATE ON MAIN RESIDENCE (1) | RATE FOR ADDITIONAL PROPERTIES (2) |
|---|---|---|
| Up to £125,000 (£300,000 for first-time buyers (3)) | 0% | 3% |
| £125,0001 – £250,000 | 2% | 5% |
| £250,001 – £925,000 | 5% | 8% |
| £925,001 – £1,500,000 | 10% | 13% |
Who pays SDLT on a lease?
The SDLT rate is based on any lease premium paid by the tenant and on the rent due under the terms of the lease (including VAT if applicable). The amount of ‘rent due’ is based on the first 5 years of rent payments.
What triggers SDLT?
Effective date. The effective date is key to triggering when SDLT is due. It is also the key date for triggering the compliance obligations (see Notifiable transactions). The effective date of a land transaction is generally the date of completion.
What does linked sale mean?
Link selling is the concept that when a customer buys one thing you try and sell them something else linked to it. So for example… If you are an electrical retailer and someone buys a radio you sell them batteries to go with it, or the dreaded warranty.