Stamp Duty & Land Tax Guide

With around 40 different tax relief's available, it is important to get the advice of an expert. We help our clients identify what tax relief's are applicable on their purchases, ensuring they pay the correct amount of stamp duty. Our team is here to assist you in navigating this complex process.

We have property tax experts here to assist both companies and individuals with any questions they may have regarding their stamp duty payments. Our team will provide expert guidance on the correct level of stamp duty that must be paid out for acquisitions.

Recent research has found that 25% of Stamp Duty Land Tax returns are incorrectly calculated. This is largely attributed to the limitations of HMRC's guideline calculator, which does not have the granularity necessary to accurately assess purchasers' individual circumstances.

Solicitors may offer Stamp Duty Land Tax (SDLT) collection services, however, purchasers should be aware that solicitors are not necessarily experts in taxation. Therefore it is important to ask specifically for taxation guidance when making a property purchase to ensure any SDLT requirements are fulfilled and to avoid any related issues.

Property owners, solicitors, and estate agents often feel lost when it comes to understanding tax regulations and requirements. Without proper guidance, buyers may end up paying more in taxes than necessary. We provide customised advice to ensure that all applicable tax relief's are applied correctly so that respective parties can save as much money as possible while complying with the law.

Property development

Stats

- A recent survey revealed that 50% of Property Developers transactions are incorrectly calculated.

- The standard rate of Stamp Duty Land Tax (SDLT) on a £2.5m site acquisition would usually be £288,750. However, with certain tax relief's in place, the amount of SDLT due will decrease - to a total of £75,000.

- Research indicates that an excess of £2bn is paid to HMRC yearly.

Residential property

- Recent studies have found that one in four transactions can over pay.

- According to data from 2020, sales of domestic properties in the UK amounted to more than one million.

- The standard SDLT rate on a transaction worth £1.5m is £93,750; however, when the relevant tax relief's are applied, the amount of SDLT due reduces to £45,000.

Stamp duty land tax simple guide

Establishments with planning permission or permitted development rights

Example: Acquisition price £1,290,000
Stamp duty payable £111,450
Correct stamp duty payable £47,000
Savings £64,450

Properties with an annexe or granny flat

Example: Purchase price £1,000,000
Stamp duty payable £43,750
Correct stamp duty payable £30,000
Savings £13,750

Stamp duty land tax simple guide

Purpose-built accommodation or HMO for students

Example: Purchase price £500,000
Stamp duty payable £30,000
Correct stamp duty payable £15,000
Savings £15,000

Purchasing out of probate, exempt from stamp duty:

Example: Purchase price £1,000,000
Stamp duty payable £73,750
Correct stamp duty payable £0
Savings £73,750

Stamp duty land tax simple guide

Retail units which offer access to flats above

Example: Purchase price £1,500,000
Stamp duty payable £64,500
Correct stamp duty payable £24,900
Savings £39,600

House that needs significant improvements

Example: Purchase price £1,000,000
Stamp duty payable £73,750
Correct stamp duty payable £39,500
Savings £34,600