Property - Tax

Question 1

When must SDLT be paid?

Answer 1

A return must be sent within 14 days of completion even if no SDLT is due, and any payment must also be made within 14 days.

Question 2

Which property transfers are exempt from SDLT?

Answer 2

1. Property transferred as a gift.
2. Property transferred to a spouse.
3. Property transferred to a former spouse upon divorce.
4. Property transferred under a variation of a will changing the beneficiary entitled to the property within 2 years of the decedent’s death.

Question 3

What are the residential rates for SDLT?

Answer 3

Up to £250,000: 0%
£250,001-£925,000: 5%
£925,001-£1.5m: 10%
Above £1.5m: 12%

Question 4

What are the non-residential rates for SDLT?

Answer 4

Up to £150,000: 0%
£150,001-£250,000: 2%
Over £250,000: 5%

Question 5

What are the rules re. additional residential purchases?

Answer 5

There is an additional charge - an additional 3% in each band, unless the transaction is under £40,000.

Question 6

What is the SDLT payable on leases?

Answer 6

It is payable on either or both of any lease premium paid and the net present value of the rent payable to the landlord over the entire lease term. The rates for the net present value are lower.

Question 7

What are the late penalties for SDLT?

Answer 7

Up to 3 months: £100
More than 3 months: £200
More than 1 year: Tax-geared penalty up to the amount of the SDLT

Question 8

What is the first residence relief?

Answer 8

If individuals are purchasing their first property as their main or only residence for up to £625,000, the rates are:
Up to £425,000: 0%
£425,001-£625,000: 5%

Question 9

What is the relief available for linked transactions?

Answer 9

If purchasers of residential property acquire more than 1 dwelling via linked transactions, the rate is calculated by the mean consideration.

Question 10

What is the relief available if 6+ residential properties are purchased in a single transaction?

Answer 10

Non-residential rates can be applied instead.

Question 11

Under Private Residence Relief, what is the equation to calculate the gain exempt from CGT?

Answer 11

gain x (period of occupation/period of ownership)

Question 12

What are the periods of absence which can qualify as deemed occupation?

Answer 12

1. 3yrs: For any reason
2. 4yrs: Working elsewhere
3. Unlimited: Working abroad
4. Last 9 months of occupation