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Where Taxpayers and Advisers Meet

SDLT BTL surcharge - effect small LTD developer ?

landlord1234
Posts: 69
Joined: Sat Nov 26, 2011 3:39 pm

SDLT BTL surcharge - effect small LTD developer ?

Postby landlord1234 » Fri Nov 27, 2015 2:53 pm

Will the recent 3% SDLT surcharge for BTL / second homes apply to a small trading LTD company that buys residential properties, renovates, and sells ?

I cannot find anything in the press releases or coverage.

Thanks

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: SDLT BTL surcharge - effect small LTD developer ?

Postby section 44 » Fri Nov 27, 2015 2:56 pm

Its likely that property developers will be exempt from this

maths
Posts: 8003
Joined: Wed Aug 06, 2008 3:25 pm

Re: SDLT BTL surcharge - effect small LTD developer ?

Postby maths » Fri Nov 27, 2015 3:05 pm

Higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016.

The higher rates will be 3 percentage points above the current SDLT rates. The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda.

The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: SDLT BTL surcharge - effect small LTD developer ?

Postby section 44 » Mon Nov 30, 2015 12:03 pm

The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.
No doubt it will be appropriate

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Re: SDLT BTL surcharge - effect small LTD developer ?

Postby Ian McTernan CTA » Thu Dec 03, 2015 11:47 am

Basically the Treasury's agenda is being driven by larger corporates and housing associations who want to get in to the BTL market, but can't compete with the more efficient private landlords, so the Treasury is changing the rules to favour those as they have been told by the large accountancy firms (guess who will be charging those larger corporates fees?) that this is the way to go.

It seems 15 will be the lower limit on numbers for corporates to avoid the charge, but as the other posters said, exact details not released yet.
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: SDLT BTL surcharge - effect small LTD developer ?

Postby section 44 » Thu Dec 03, 2015 11:49 am

you have to laugh


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