Stamp duty on various purchases on one development

[pioneerproperty]

In addition to my last question:

Another deal we are working on involves us buying 6 pieces of land on the same block. However different people own the different plots.

We are buying 5 of them on option and our partners in this venture already own another plot.

We will sell as 1 development plot with outline for 100 flats. How is our stamp duty calculated?

Is it on the site as a whole at 4% or as 6 separate sites? And as all the individual sites are below £100,000 are tax exempt?

Thanks again

Garry

[Ian McTernan CTA]

This could depend on the drafting of the contracts and I suggest you seek legal advice on this point.

On the sale, I would refer you to my other answer.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[paulc]

As the sellers are different people, it will probably be treated as six different transactions. Transactions are only added together if they "form part of a single scheme, arrangement or series of transactions between the same Vendor and purchaser or in either case persons connected with them."

On the sale by you, it will be treated as a single sale.

[pioneerproperty]

Paul and Ian

Many thanks for your replies.

Youve both come up with some good points. On all my questions on here.

Ian I've emailed you - Paul are you a tax advisor too, as I'd also like to speak with you if you are.

Garry

[paulc]

Garry

I'm a tax lawyer. I can be contacted on paul.christian@wardhadaway.com

Paul