SDLT/LLT

Question 1

when are higher SDLT/LTT rates payable?

Answer 1

for non-UK residents/2nd home owners

Question 2

what is the consequence is SDLT/LLT is not paid?

Answer 2

Fines for non-payment + HMLR application rejected without proof of payment

Question 3

how is SDLT and LLT different?

Answer 3

there is relief for 1st time buyers in England (SDLT)

the timeframe for paying SDLT and LLT are different

Question 4

when is relief for 1st time buyers available?

Answer 4

in England when purchasing a residential property which is £500k or less (if above this they will not get relief)

 £0-£300k = 0%
 £300k-£500k = 5%

Question 5

when is SDLT payable?

Answer 5

within 14 days of completion

Question 6

when is LLT payable?

Answer 6

within 30 days of completion

Question 7

what is SDLT/LLT charged on in a freehold transaction?

Answer 7

SDLT and LLT charged on:
o PP (inc. any VAT) +
o Fixtures (inc. any VAT)

(So the price for any chattels can be deducted)

Question 8

what is SDLT/LLT charged on when granting a lease?

Answer 8

SDLT (Stamp Duty Land Tax) is charged on:
o Any premium (inc. any VAT) +
o NPV (inc. any VAT)

LLT (Land Transaction Tax) is charged on:
o Any premium (not inc. any VAT) +
o NPV (inc. any VAT)

Remember: VAT will only be relevant if LL has opted to tax

Question 9

what is NPV?

Answer 9

NPV (net present value) = a way to work out the value of the rent payments over the whole lease in today’s money

Question 10

what is SDLT/LLT charged on when assigning a lease?

Answer 10

SDLT/LTT charged on any premium only (i.e. not rent)