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Where Taxpayers and Advisers Meet

SDLT linked transactions

Andrew01
Posts:41
Joined:Wed Aug 06, 2008 3:27 pm
SDLT linked transactions

Postby Andrew01 » Sat Jun 03, 2023 1:35 am

Hello Property forum

I am not the lease holder
May 2022 pay to extend lease by 90 years on flat A cost £8400, now own a very small share of flat A as tenants in common.
This was not reportable as SDLT below £40,000

Subsequently approximarely November 2023 purchase 39998-00 of flat A

£39999-00 on its own is SDLT free as below £40,000 reporting threshold.
But would this be linked transaction with lease extension a year and half ago?


If this makes any odds.
At the time of the lease extension there was no intention in the future November 2023 to purchase an small share of the flat.

thank you

Andrew01
Posts:41
Joined:Wed Aug 06, 2008 3:27 pm

Re: SDLT linked transactions

Postby Andrew01 » Tue Jun 06, 2023 2:39 pm

I phone HMRC stamp duty help line.

I was told the by HMRC the two transactions described above would not be linked as there not the same seller
Lease extensions for flat sold by coucil.
The part share of the flat sold by the Leaseholder.

I asked about the following HMRC information defining linked transactions below
HMRC said you would have meet all three of the below to be a Linked transaction.

HMRC counts transactions as linked if:

1 there’s more than one transaction
2 the transactions are between the same buyer and seller or between people connected with either of them
3 the transactions are part of a single arrangement or scheme or part of a series of transactions
https://www.gov.uk/guidance/sdlt-linked-purchases-or-transfers

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: SDLT linked transactions

Postby bd6759 » Tue Jun 06, 2023 7:38 pm

But since you were not a party to the lease, how could you extend the lease?

The transaction to extend the lease was not between you and the council, it was between the leaseholders and the council.

Your transaction was a payment in 2 tranches to the leaseholders to acquire an interest in the lease.


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