Hi all, I'm purchasing a residential property through a limited company. HMRC state the following in respect of purchases by companies:
"A purchase of major interests in one or more dwellings by a company will comprise a higher rates transaction and the higher rates of SDLT will apply if Conditions A and B are met in respect of at least one of the dwellings [Paras 4 and 7]:
Condition A - the dwelling, or a major interest in it, is purchased for chargeable consideration of £40,000 or more.
Condition B - the chargeable interest acquired is not subject to a lease which has more than 21 years to run on the date of purchase.
If none of the interests in dwellings meet both Conditions A and B then the higher rates will not apply to the purchase."
I understand Condition A, but don't understand what Condition B means. I've searched the internet for hours as well as phoning HMRC but without success.
The property I'm purchasing is over £40k but is a leasehold property with over 21 years left on the lease, hence why I'm interested. I'm 99% sure that SDLT will be payable at the higher rate but just want to understand what condition B means in layman's terms.
Thanks very much in advance!
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