General

Question 1

At what point is stamp duty land tax payable?

Answer 1

Within 14 days of completion

Question 2

Is stamp duty land tax only payable for sales?

Answer 2

No - can also be payable for transfers of land/property.

Question 3

What are the stamp duty land tax brackets for commercial property? How would the rates be applied to a property in the highest bracket?

Answer 3

0% up to AND including value of £150,000
2% for £150,001 - £250,000
5% for £250,001 and above

If a property was, say, £350,000, it would be as follows:
0% for the first £150,000
2% on the £150,01 - £250,000 (i.e. 2% on £99,999
5% on the £250,001 - £350,000 (i.e. 2% on the £99,999)

Question 4

Are the stamp duty land tax brackets the same in Scotland, Wales and England?

Answer 4

No

Question 5

Where could you obtain a credit rating of a tenant?

Answer 5

A CRA (credit rating agency) such as: Dunn and Bradstreet, CreditSafe, or Experian.

Question 6

How would you asses covenant strength?

Answer 6

ultimately, the companies accounts must be analysed, this can be achieved via:

obtaining a credit rating

AND, or

using the profits method