UK and International Tax news

HMRC Issues Further Guidance On Higher Rates of SDLT

Friday 24th August 2018

HMRC has recently updated its guidance on the higher rates of stamp duty land tax due in respect of residential property.

Since April 2016, higher rates of SDLT apply to purchases of additional residential property by individuals and to purchases of residential property by companies and trusts, but not bare trusts or interest in possession trusts.

It does not apply to purchases of property under £40,000.

If there is a period of overlap in ownership of a main residence, a refund of higher rate SDLT can be obtained if the previous main residence is sold within 36 months following the purchases of the new property.

The guidance has been updated to include more detail on the rules for companies and partnerships.

In particular, companies are liable to the higher rates for any residential property purchased if the property is £40,000 or more or the interest in the property is not subject to a lease which has more than 21 years left. If the property costs more than £500,000, the 15% higher threhold SDLT rate for corporate bodies may apply instead.

Partnerships are also subject to the higher rates where they already own residential property and further residential properties are purchased.

Where a partner is buying on their own behalf, the rules do not apply to other non-spouse partners. A partner will not have to pay the higher rates when buying a property for themselves and their only additional properties are used for their partnership’s trade.


If you would like further details on the above, please contact Keith Rushen on 0207 486 2378.



Contact Us