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Where Taxpayers and Advisers Meet

director sells land to company

Feedback
Posts:351
Joined:Thu Feb 23, 2012 10:26 am
director sells land to company

Postby Feedback » Thu May 10, 2018 3:15 pm

if a director transfers 10% of his landholding (total value at £9m, transfer value £900k) into his company to reduce his DLA, is the stamp calculated on the £900k or £9m and is the rate 15% i.e. £135k?

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: director sells land to company

Postby SDLT Geek » Thu May 10, 2018 5:57 pm

DLA here is directors loan account?

The 15% rate of SDLT is applicable where the chargeable consideration for any one dwelling is over £500,000.

SDLT should be calculated on the basis of the market value of the 10% interest transferred.

What is the landholding? Dwellings? If so, how many? Multiple dwellings relief might apply? Surcharged rate?

Development land?


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