Super rate SDLT query

[tonka249]

Hello all
I need some advice. My company bought a residential property (flat) in London last July with the purpose of using it as a rental business. We have tenants in now who have been there since September (tenancy agreement in place). They are paying the going rent as advised by a couple of letting agents. The IR small business Compliance department have just sent me a letter asking for various documents relating to the sale and whether we knew the vendor, who lives there etc. They have also asked why we feel the SDLT should not be the ‘super rate’ of 15% and instead the rate of 8% which we paid at the time after consulting our solicitor. I am just returning all the information and I just wanted some advice/reassurance that I am correct. The HMRC site (and all other solicitor sites I can find) clearly state that the super rate is not enforceable when the property is being used as a residential rental business. Can anyone help/reassure? Thanks in advance

[maths]

Per HMRC Manual:

Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: property rental businesses FA03/SCH4A/PARA5

Where the acquisition of a chargeable interest is exclusively for the purpose of exploitation as a source of rents or other receipts in the course of a qualifying property rental business, the 15 per cent higher rate charge will not apply to the transaction. Instead, SDLT will be charged at the higher rates – see SDLTM09835 for more information on companies and the higher rates.