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Stamp Duty Land Tax Advisers

Stamp Duty Land Tax (SDLT) has changed significantly in recent years, and even if your property purchase is straightforward, it can carry unexpected charges. With the highest rate reaching 19%, it’s a big outlay. However, there are also reliefs you may be entitled to that are easy to overlook, for example, for first-time buyers.

Whether you’re buying property as a private individual, through a company or partnership, or as a developer structuring a land deal, getting expert planning advice before you complete can protect you from liabilities you didn’t see coming. If you’re making the move, our 70-strong Cambridge-based tax team is ready to help.

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Sarah Davis, Director in PEM's Stamp Duty Land Tax team

SDLT advice across the full range of property transactions

The structure of a purchase, the nature of the buyer and the history of the property can all affect what’s owed. And HMRC scrutiny in this area has increased, particularly around corporate purchases of residential property over £500,000.

Our advisers can work with you across a full range of SDLT situations:

First-time buyer relief, including cases involving overseas properties
Partnerships, companies and business restructures where property is transferred
Developer and landowner transactions, including overage, deemed consideration and works provisions
HMRC enquiries – whether you’re already under review or want to check your position first.

Stamp Duty can be complex, but with reliable advice from our tax experts, you’ll know exactly where you stand.

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Judith Pederzolli, Director in PEM's Stamp Duty Land Tax team

FAQs

I own a residential property overseas but am buying my first home in the UK; will I have to pay the 5% Stamp Duty surcharge?

Yes, you must consider any residential properties you own, regardless of where they are. However, property owned overseas may not cause the surcharge to be payable on a UK purchase if the overseas property is valued at less than £40,000, or if the beneficial ownership sits within another party. There are many types of ownership, such as certain usufruct rights, which mean the legal owner wouldn’t be treated as owning a major interest in the property, so it would not count for the 5% surcharge. If you have an overseas property with unusual rights in place, it’s worth seeking further advice.

If I give my existing home to a family member before buying my new main residence, will the 5% Stamp Duty surcharge apply?

A replacement of a main residence can be achieved by gifting the former main residence, as this still counts as a disposal. However, a gift to your spouse would not avoid the surcharge as neither the purchaser nor your spouse can retain an interest in the former main residence to be outside the surcharge. Gifts should be considered carefully, as they could create other tax liabilities, such as capital gains tax on disposals, inheritance tax and income tax on future rental income.

My partner and I each own a property, but we both live in my home. We want to buy a new home together. Will we be subject to the 5% Stamp Duty surcharge?

It depends on whether you’re married or in a civil partnership, or unmarried.

If you’re married, and you both live in one spouse’s property while the other property is rented out, selling that main residence and jointly buying a new one means the higher rates won’t apply. Both spouses are treated as replacing their main residence, even if one retains a rental property.

If you’re unmarried, the position is different. Because you have no legal interest in your partner’s property, you won’t be treated as replacing a main residence when you jointly buy. The higher rates will apply to the purchase.

I am buying the house next door in order to extend my home

I do not currently own any residential property but am now buying a house with a granny annex, will I have to pay the 5% surcharge?