Important Note. The information given here is for information only and is of a general nature and is not exhaustive or comprehensive. Taxation is a technical and complex area of law and you should not act or refrain from acting without comprehensive specialist advice on the facts of your case.
SDLT is almost always payable by the buyer. However most schemes rely upon some co-operation from the seller. Seller co-operation is far more likely in commercial property than residential property. Because of the high rates of SDLT over £500,000 planning is likely to be more cost effective here. We have sought to highlight some simple planning routes here which have good prospects of success.
| Route | Can be used for | Ease of set up | Any down side |
|---|---|---|---|
| Sykes Anderson "Loophole" Scheme (more information on request) | Residential over £500,000 Commercial over £500,000 | 9/10 Small amount of cooperation from seller | None. If it does not work you pay the tax you would have paid anyway. |
| Live work unit or other part commercial part residential | Live work | 10/10 | None |
| 6 or more residential dwellings | Residential in "disadvantaged areas" | 10/10 | None |
| Separate property only company |
Residential over £500,000 Commercial over £500,000 |
4/10 - residential 7/10 - commercialneeds seller's cooperation |
Possible SDLT clawback within 3 years |
9 Devonshire Square, London EC2M 4YF Tel 020 3178 3770 Fax 020 3178 3771 DX 729 London/City E-mail: |
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