Mr A (who already owns a property) signed a contract and paid a non refundable deposit of 30% on a new build of total value 149k. This happened in October 2015, ie before any new rules were announced. According to both solicitors, this was the "exchange of contracts".
Both building and completion of sale are due in November 2017.
1) What is the rate of SDLT expected to be paid on this completion?
Mr A is also shareholder and director of a limited company "Bricks Ltd" which also already owns a property. The company was formed in circa August 2015, and the intention (as explicitly stated by Mr A to his solicitor at the time of signing in October) was for Bricks Ltd to own the newly completed property. Again, at the time of signing, the solicitor considered this to be a simple routine assignment to be done closer to completion.
2) If this assignment as originally planned is made to Bricks Ltd, what is the rate of SDLT expected to be paid on this completion? Would this assignment involve the vendor?
3) Would the answer to 2) change if a deed of variation or any other mechanism was used instead? Would these mechanisms involve the vendor?
4) If the intention for assignment to Bricks Ltd was formalised in October 2015 (as a secondary contract for instance), would that make a difference? If so, what would the nature of a such a contract be? Would it involve the vendor?
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch