Freehold property transactions Flashcards
Tax payable by buyer and seller in residential property sale
Buyer: stamp duty land tax in England/land transaction tax in Wales
Seller: likely no CGT if it was their main residence
Tax payable by buyer and seller in commercial property sale
Buyer: SDLT/LTT and possibly VAT
Seller: corporation tax (if a company)
What is stamp duty land tax paid on?
Property transactions: including land and fixtures (excluding chattels)
SDLT rates for first-time buyers, if it’s a main residence under 625,000:
0% on up to 425,000
5% on 425,000-625,000
SDLT rates for non-first time buyers:
0% on up to 250,000
5% on 250,001-925,000
10% on 925,001-1.5m
12% on remainder
SDLT rates on non-residential/mixed-use properties
0% on up to 150,000
2% on 150,001-250,000
5% on remainder
When must SDLT be paid?
Within 14 days of completion
Is there a relief for 1st time buyers from LTT?
No
Only a relief from SDLT
LTT rates on residential properties
0% on up to 225,000
6% on 225,001-400,000
7.5% on 400,001-750,000
10% on 750,001-1.5m
12% on remainder
LLT rates on non-residential/mixed-use properties
0% up to 225,000
1% on 225,001-250,000
5% on 250,001-1m
6% on remainder
What is CGT private residence relief, and the exceptions to it?
No CGT on the sale of a dwelling house that was the main/only residence
BUT:
- if garden over 0.5 acres, CGT chargeable on excess
- no relief if part of house used exclusively for business
Do residential property sales involve VAT?
No
VAT on commercial property sales
Sale of new building (under 3 years old): standard-rated
Sale of old building: exempt
BUT: seller might opt into tax to recover input tax (this will put off a buyer who doesn’t make taxable supplies)
When should the buyer be given the Energy Performance Certificate?
Ideally within 7 days of first marketing, but within 28 days latest
