Buying Multiple properties SDLT relief
Discussion
Hi, got a query on the situation as follows, if someones buying 9 properties for the total sum of £1.2m then the rate of stamp duty would be 5%, leading to a stamp duty bill of £60,000. I mentioned this to a solicitor who said there was no way to reduce this as although there are multiple properties the fact that they are a linked transaction makes them liable to SDLT as one contract.
A little bit of HMRC browsing reveals SDLTM29900 which is relief for transfers involving multiple dwellings, according to the notes the 1.2M can be divided by 9 and then the relevant SDLT paid on that price for each property, which makes 1%. I did read the guidance and it made reference in one place to any transaction of more than 6 properties being commercial and therefore not applicable. It didn't mention it in the guidance though, only on one of the examples.
Has anyone got any experience or knowledge of this that might know what the answer is?
Just to be clear, I do have a solicitor (as mentioned above) but I don't want to start questioning him unless i'm sure there is something to discuss.
Any pointers or advice gratefully received and much appreciated.
A little bit of HMRC browsing reveals SDLTM29900 which is relief for transfers involving multiple dwellings, according to the notes the 1.2M can be divided by 9 and then the relevant SDLT paid on that price for each property, which makes 1%. I did read the guidance and it made reference in one place to any transaction of more than 6 properties being commercial and therefore not applicable. It didn't mention it in the guidance though, only on one of the examples.
Has anyone got any experience or knowledge of this that might know what the answer is?
Just to be clear, I do have a solicitor (as mentioned above) but I don't want to start questioning him unless i'm sure there is something to discuss.
Any pointers or advice gratefully received and much appreciated.
If the properties are registered with separate title then you will pay the stamp duty as applicable on each, if the property is a single title but split into separate properties then the SDLT relief may be applicable, though I would speak to your solicitor in this case as there are exclusions.
AndyTR said:
If the properties are registered with separate title then you will pay the stamp duty as applicable on each, if the property is a single title but split into separate properties then the SDLT relief may be applicable, though I would speak to your solicitor in this case as there are exclusions.
I don't agree.If you are buying 9 flats in a block, you will have a linked transaction.
If you are buying 9 houses from a single seller scattered around a town, then they are individual transactions.
You need to take proper legal advice.
loafer123 said:
AndyTR said:
If the properties are registered with separate title then you will pay the stamp duty as applicable on each, if the property is a single title but split into separate properties then the SDLT relief may be applicable, though I would speak to your solicitor in this case as there are exclusions.
I don't agree.If you are buying 9 flats in a block, you will have a linked transaction.
If you are buying 9 houses from a single seller scattered around a town, then they are individual transactions.
You need to take proper legal advice.
This saddens me. The UK is awash with people who cannot even afford a very modest home, yet those with a million quid to spend on multiple properties can expect to pay a lower level of stamp duty than them.
No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
budfox said:
This saddens me. The UK is awash with people who cannot even afford a very modest home, yet those with a million quid to spend on multiple properties can expect to pay a lower level of stamp duty than them.
No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
No doubt the people with £1m+ to invest in housing will have already paid tax on income/inheritance etc, now they get to pay again, can't blame them for trying to reduce it.No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
Also, a modest home in many parts of the country is still available for under £125k which means no stamp duty.
budfox said:
This saddens me. The UK is awash with people who cannot even afford a very modest home, yet those with a million quid to spend on multiple properties can expect to pay a lower level of stamp duty than them.
No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
You have it the wrong way around. People buying several flats in a block would pay a higher rate of stamp duty based upon the threshold of the combined value.No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
budfox said:
This saddens me. The UK is awash with people who cannot even afford a very modest home, yet those with a million quid to spend on multiple properties can expect to pay a lower level of stamp duty than them.
No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
So if the tables were turned and you had Millions to buy multiple properties, you wouldn't look to limit the amount of money you have to pay out? - I seriously doubt it!No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
budfox said:
This saddens me. The UK is awash with people who cannot even afford a very modest home, yet those with a million quid to spend on multiple properties can expect to pay a lower level of stamp duty than them.
No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
It saddens me that there are people who make this sort of statement when they clearly don't know what they are talking about.No offence to the OP, I don't now the full story, but it cannot be right that the wealthy receive tax breaks that push up prices and make homes even less affordable to the masses.
Where is there a tax break? The rates of SDLT are clear and the same for everybody. People who buy 'modest homes' and those who pay millions are all subject to the same rules. Except that the more one pays for a property the higher the rate of tax.
There is a stronger argument that the less well off are the ones getting tax breaks. As usual.
loafer123 said:
I don't agree.
If you are buying 9 flats in a block, you will have a linked transaction.
If you are buying 9 houses from a single seller scattered around a town, then they are individual transactions.
You need to take proper legal advice.
If you are buying 9 residential properties at the same time from the same seller, no matter how geographically close together they are, you have linked transactions. However, if multiple dwellings relief applies (which it may well do here) the rate of SDLT is based on the average price per property, not the total price for all (as it would normally be for linked transactions). In this case, the average price is £133,333 so 1% duty should apply using MDR.If you are buying 9 flats in a block, you will have a linked transaction.
If you are buying 9 houses from a single seller scattered around a town, then they are individual transactions.
You need to take proper legal advice.
OP, mention this to your solicitor.
Sorry, I should add - while any transaction comprising the purchase of 6 or more residential properties would normally be treated as commercial, you are still entitled to treat it as residential and claim the relief.
Edited by Jobbo on Sunday 28th September 22:39
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