Post-Completion Steps

Question 1

What are the 3 post-completion steps?

Answer 1

1. Register charge at Companies House
2. Register title and redeem mortgage
3. Pay SDLT and CGT

Question 2

How is title registered?

Answer 2

Form AP1 (registered) or Form FR1 (unregistered).

Sets out details of transfer deed, SDLT5, Form DS1, mortgage deed, registration of charge at companies house and other documents and overriding interests. If title is unregistered, then will also provide the epitome of title and deeds / docs referred to in it and land charges searches for previous owners in chain.

Question 3

When and why will residential SDLT be paid?

Answer 3

Paid if you buy property over a certain price in England. Wales pay Land Transaction Tax for the same reason. Often paid for buying freehold, leasehold or where you transfer land in exchange for payment (e.g mortgage or share in house). Must be paid 14 days after completion.

Question 4

What are the reliefs from residential SDLT?

Answer 4

Discount relief for first time buyer’s below £625,000:
* 0% up to £425,000
* 5% between £425,000 - £625,000

For second property, additional 3% SDLT on whole purchase price.

Question 5

When is commercial SDLT paid?

Answer 5

No SDLT up to £150,000.
Between £150,000-£250,000 = 2%
Over £250,000 = 5%.

Question 6

How does LTT work in Wales?

Answer 6

No relief for first time buyers. Must be paid within 30 days of completion.

Question 7

What is capital gains tax?

Answer 7

Paid when an individual sells land or property during their lifetime and makes a profit or gain on it.

Question 8

What is private residence relief?

Answer 8

Relief from CGT paid on the sale of person’s home if:
* it is that person’s main home for all time they lived in it
* Not let (but may have lodger)
* Has not been used for business purposes
* Below 50k square metres
* Not bought just to make a gain

If more than 1, must choose private residence.