Purchasers Costs and SDLT

Question 1

What is usually deducted from the gross market value to provide a net market value?

Answer 1

Purchaser’s costs (as the purchaser will have to pay these).

Question 2

What are purchaser’s costs deemed to be?

Answer 2

1. SDLT - at prevailing rate
2. Agent’s fees, say 1% of purchase price +VAT
3. Solicitor’s fees, say 0.5% of purchase price + VAT

Question 3

What percentage of SDLTG is charged for a commercial property above £150,000?

Answer 3

2% up to £100,000 above £150,000 (first £150,000 is exempt then remaining amount would be 5% if higher than £250,000).

Question 4

SDLT is also payable on the granting of what?

Answer 4

New leases (calculated on NPV of lease discounted at RPI).

1% over value of £150,000.

NB:

NPV is defined as total rent payable over term of lease.