Paying Stamp Duty Land Tax & How to Pay Less or Avoid Stamp Duty Altogether!

HM Revenue & Customs (HMRC) recommends that you make all of your Stamp Duty Land Tax payments electronically. HMRC counts all of the payment methods below as electronic apart from payment by post.

Paying Stamp Duty and Land Tax (SDLT) for Residential Property

The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ).

New leases

If the transaction involves the purchase of a new lease with a substantial rent there may be an additional SDLT charge to that shown below, based on the rent.

Residential land or Property Stamp Duty Land Tax rates and thresholds

Purchase price/lease premium or transfer value	SDLT rate	SDLT rate for first-time buyers
Up to £125,000	Zero	Zero
Over £125,000 to £250,000	1%	Zero
Over £250,000 to £500,000	3%	3%
Over £500,000	4%	4%

If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £250,000 (by someone who is not a first-time buyer) is charged at 1 per cent, so £2,500 must be paid in SDLT. A house bought for £950,000 is charged at 4 per cent, so SDLT of £38,000 is payable.

First Time Buyers

The first time buyer’s £250,000 threshold applies from 25 March 2010 up to 24 March 2012 inclusive.

Avoid Paying Stamp Duty and Land Tax Due


There a few stamp duty mitigation schemes which will allow you to avoid paying stamp duty land tax completely but there will be a chargeable fee for the tax lawyers to enable this exemption.

These stamp duty mitigation schemes benefit purchases, at the lower level, above £400,000 and substantially help purchasers paying in excess of £3,000,000 and above. These stamp duty mitigation schemes can benefit both residential and commercial purchases or mixed use.

For more information, please contact Zach Kendal initially on 0870 063 8661 and you could save your Stamp Duty Tax costs up to 50% or more on your purchase today! Remember, we can still have our Tax Consultants may help you Save your Stamp Duty costs EVEN if you have already exchanged - don't delay call 0870 063 8661 now.

Independent Stamp Duty Mitigation; Stamp Duty Exemption Planning Information. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you NOT want to save your money? For information of users: This material is published for the information of clients. All stamp duty and land tax mitigation enquiries are referred to a network of selected tax professionals.

Stamp Duty & Land Tax

Stamp duty is a collection of different duties, each of which is levied in different circumstances. Stamp duty is likely to be charged on land transactions; grants of leases; and the transfer of some other assets, most notably shares. The purchaser is liable to pay stamp duty, and the amount they will be required to pay is calculated with regard to the amount paid or the cash value of the payment if it was not cash in the first place.

Stamp duty land tax is one form of stamp duty. It applies to transactions in houses, flats and other buildings and land in the UK are transferred. In certain circumstances it also applies to some leases.


Rates

The rates at which Stamp Duty Land Tax (or SDLT) is payable vary depending on the type of transaction. This article will look first at transactions in which land or buildings are purchased. In these cases there is a minimum tax threshold; if the value of the land or building being purchased falls below this threshold then no SDLT will be payable. Presently this figure is set at £125,000 for residential property and £150,000 for non-residential or mixed-use property.

After this SDLT is divided into bands of 1% (for transactions with a value up to £250,000), 3% (for transactions with a value up to £500,000) and 4% (for transactions with a value over £500,000). From January 2011, transactions above £1,000,000 will have a SDLT of 5%.


Disadvantaged Areas

It should also be noted that there are a number of forms of relief available against SDLT. The government has recently introduced stamp duty land tax relief on properties that are bought in so-called 'disadvantaged areas'. This applies only to residential property acquisitions, and offers complete relief from SDLT on transactions of this kind with a value of less than £150,000. 


Zero Carbon Homes


The government have also introduced SDLT relief on zero-carbon homes. In order to qualify for this form of relief the home in question must generate as much energy as they use, and the transaction must have a value of less than £500,000. Crucially, first-time buyers also qualify for an exemption on residential purchases up to £250,000. In cases of joint purchases, both parties must be first-time buyers in order to qualify.


SDLT and Leases

The rules regarding SDLT (Stamp Duty and Land Tax) and leases are more complex. Essentially, SDLT may be charged on any transaction in which a lease is granted and rents form a part of (or all of) the consideration. Regardless of the terms of the transaction, any lease with rent of any value that is being transferred for a term of seven years or more must be notified to HM Revenue and Customs. If the term of the lease is less than seven years then HMRC must be notified if SDLT will be payable at a rate of 1% or more.

When notifying HMRC you must complete form SDLT1, which is a land transaction return. This must be completed and returned within thirty days of the actual date of the transaction, and you should ensure that you also make payment of any SDLT liability within this time. The relevant forms can be acquired from your Tax Office, but the entire process can also be carried out online; the major benefit of this is that you will receive an instant certificate of confirmation.

For more information, please contact Zach Kendal initially on 0870 063 8661 and you could save your Stamp Duty Tax costs up to 50% or more on your purchase today! Remember, we can still have our Tax Consultants help you Save your Stamp Duty costs EVEN if you have already exchanged - don't delay call 0870 063 8661 now.


Independent Stamp Duty Mitigation; Stamp Duty Exemption Planning. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you not want to save your money? For information of users: This material is published for the information of clients. All stamp duty mitigation enquiries are referred to a network of selected tax professionals.

Stamp Duty - Referrals

Are you interested in adding another monthly income for simply referring your client who is purchasing a property of £500,000 and over who can potentially save £1000s in Stamp Duty Tax Planning?

What could you do with an extra £500, £1000 or £1500 a month in addition to your main income?

You will earn from £500 - £1000, subject to property purchase price, for every introduction of a new client who signs up to anyone of the Tax Planning Schemes offered through our network of Tax Planning firms who successfully complete any of the Stamp Duty Tax schemes.

You will receive prompt payment upon completion of the scheme.

Why not earn potentially £1000s more every month by becoming an Affiliate and sign up to refer friends or colleagues and benefit from a further passive commissions as their clients further benefit from savings of £1000s in Stamp Duty Tax.

Please contact Zach Kendal on 0870 063 8661 in the first instance and start earning £100s or £1000s of passive commission today!


Independent Stamp Duty Mitigation & Stamp Duty Exemption Planning Advice. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you not want to save your money?

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or firm.

Stamp Duty Exemptions & Buying a Property Over £500,000

If you could legally save 50% of the Stamp Duty Tax due on your property purchase of £500,000 would you be interested in doing so? Of course you would!

With the savings you make, wouldn't it be great to use this money to upgrade your kitchen or bathroom or improve your flooring? You could even do a complete overhaul depending on the size of your purchase!!

Through legal Stamp Duty Tax Planning there are a few schemes which will, after associated fees and costs, help Save you 50% or more of the Stamp Duty Tax you will have to pay on a residential or commercial property purchase in England and Wales.

If you consider,  a £500,000 property purchase, with the Stamp Duty Tax rising to 4% from March 2010, you will have to pay £20,000 to HMRC.

Surely, if you can save £10,000 or more through Stamp Suty Tax planning you would be open to using a specialist Tax Lawyer to help to you do this, right? Of course you would be cause it makes financial sense.

For a property purchase of £1,000,000 you will have to pay 5% Stamp Duty Tax (from Jan 2011), that's £50,000! So, if you could save 50% of this cost, AFTER all fees and costs, anyone can see it benefits to make suitable tax planning arrangements to take action and make these savings.

For more information please call Zach Kendal 0870 063 8661 and we will put you in touch with several Tax Planning experts to help you easily save £1000s on your property purchase right away. Remember, EVEN if you have exchanged, you can still make large savings on your Stamp Duty Tax costs so call 0870 063 8661 today!

Independent Stamp Duty Mitigation
Stamp Duty Exemption Planning Advice. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you not want to save your money?

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or firm.

Stamp Duty Mitigation Scheme - Stamp Duty Exempt - Stamp Duty Exemptions for Property

There are serious financial benefits available to property purchasers through utilising the Stamp Duty Land Tax Mitigation Scheme. Significant savings can be realised especially with purchase costs of £500,000 and over.

Stamp Duty for property prices between £500,000-£999,999 has increased to 4% since March 2010, and with an increase to 5% Stamp Duty for properties costing £1,000,000 (from Jan 2011) or more, the Stamp Duty Tax can seriously damage your wealth!

You don't have to be a millionaire to benefit from stamp duty mitigation planning either. You can potentially save a large amount of Stamp Duty Tax even if you are buying a property at £400,000. This applies to both residential and commercial property in England and Wales. Yes, there are associated costs but overall you still potentially save £1000's of stamp duty compared to without any sort of tax planning and paying the full standard Stamp Duty Tax.

You may be aware, a while ago, The Independent newspaper ran an article about the Labour Party’s use of SDLT planning which saved them £210,000 in stamp duty land tax. Here are some highlights of what you could expect as a client to see in any particular stamp duty mitigation plan: -

1). Schemes have been running for a good length of time.
2). That its proven to work in a good number of cases.
3.) Applies to both residential and commercial property.
4.) Minimum vendor involvement.
5.) Doesn't matter if you have already exchanged.
6). The planning is backed by a robust Counsel’s Opinion given by leading Tax Counsel.
7). The plan has been disclosed to HMRC and has a corresponding scheme disclosure number ensuring that it is fully compliant with HMRC requirements for tax planning.
8). That any queries by the Inland Revenue have been promptly and easily satisfied.
9). That the saving from the scheme is substantial.
10). That the scheme is low risk and non-aggressive and does not involve either the vendor or the lending institution involved in the transaction or effect either their title, security or ability to realise funds from the sale of the property.

How does it work?
For more information please call Zach Kendal 0870 063 8661 and he can put you in touch with several Tax Lawyers which can help you save £1000's straight away. Remember, EVEN if you have already Exchanged on your property you can still apply for these large savings - so don't delay - call 0870 063 8661 today!

-- Independent Stamp Duty Mitigation & Stamp Duty Exemption Planning Advice. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you not want to save your money?

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or firm.

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Price of Property Purchase	£400,000 or Above £500,000 or Above £1,000,000 or Above £2,000,000 or Above £5,000,000 or Above £10,000,000 or Above £20,000,000 or Above £50,000,000 or Above
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Independent Stamp Duty Mitigation & Stamp Duty Exemption Planning Advice. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you not want to save your money?

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or firm. All stamp duty mitigation enquiries are referred to a network of selected tax professionals.

Stamp Duty Tax For First Time Buyers

Stamp Duty Tax Exempt for First-Time Buyers
First-time buyers of residential property can apply for SDLT relief if all of the following apply:

A) The effective date is on or after 25 March 2010 and before 25 March 2012

B) The price agreed of the purchase is £250,000 or less

C) The buyer intends to live in the property and it will be their only or main home

D) They have not previously owned property or land either in the UK or anywhere else in the world - including property bought with anyone else

We are not sure how HMRC intends to validate first time buyers from overseas, especially outside of the European Union, who intend to purchase a property in England & Wales.

This means that from 25 March 2010 to 24 March 2012 inclusive the threshold for qualifying first-time buyers of residential property is £250,000.

Financial institutions can claim the Stamp Duty and Land Tax relief for first-time buyers using alternative finance schemes.

When First-Time Buyer’s Exemption Does Not Apply

The exemption is not available for any of the following:

1) Non-residential or mixed use property

2) Leasehold property with a lease of less than 21 years

3) SDLT payable on rent for leasehold properties (relief applies only to the premium)

4) Properties that are treated as linked transactions for SDLT purpose - unless it's to do with the same property, eg a separate lease on a garage

5) Shared ownership schemes where the payment is made in stages (but the relief can be claimed if a market value election is made)

For more information, please contact Zach Kendal initially on 0870 063 8661 and you could save your Stamp Duty Tax costs up to 50% or more on your purchase today! Remember, we can still have our Tax Consultants help you Save your Stamp Duty costs EVEN if you have already exchanged - don't delay call 0870 063 8661 now.
Independent Stamp Duty Mitigation; Stamp Duty Exemption Planning Information. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you NOT want to save your money? For information of users: This material is published for the information of clients. All stamp duty and land tax mitigation enquiries are referred to a network of selected tax professionals.

Stamp Duty tax & Disadvantaged Areas

Stamp Duty Exemption for Disadvantaged Areas

Stamp Duty Exemption in disadvantaged areas applies to residential property located in areas designated by the government as 'disadvantaged'. It also applies to the residential element of 'mixed use' (business and residential) property. 
The SDLT threshold in these cases is £150,000 as opposed to £125,000 for equivalent properties in other areas. During the period 3 September 2008 to 31 December 2009 inclusive Disadvantaged Areas Stamp Duty Exemption did not apply to purely residential properties in areas designated as disadvantaged because the SDLT threshold for these properties was temporarily increased to £175,000. However, it did apply to the residential element of mixed use properties.

Areas which qualify as disadvantaged

There are nearly disadvantaged 2,000 areas which can qualify for Stamp Duty Exemption in the UK. In England, Wales and Northern Ireland they're based on local government wards and electoral divisions. In Scotland they're based on 'postcode areas'.

To qualify for relief, a property (or the land on which it stands) must have been situated in a qualifying area at the 'relevant date'.

The relevant dates are:

• 7 May 1998 in England
• 1 April 1998 in Wales
• 21 April 1991 in Scotland and Northern Ireland.

A property will also qualify for relief if, at 27 November 2001, it had the same full postcode as a property which was situated in a qualifying area at the relevant date.

For more information, please contact Zach Kendal initially on 0870 063 8661 and you could save your Stamp Duty Tax costs up to 50% or more on your purchase today! Remember, we can still have our Tax Consultants help you Save your Stamp Duty costs EVEN if you have already exchanged - don't delay call 0870 063 8661 now.

Independent Stamp Duty Mitigation; Stamp Duty Exemption Planning Information. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you NOT want to save your money? For information of users: This material is published for the information of clients. All stamp duty and land tax mitigation enquiries are referred to a network of selected tax professionals.

Avoiding Stamp Duty Tax or Evading Stamp Duty Tax?

Avoiding Stamp Duty Tax or Evading Stamp Duty Tax, What's the DIfference?

It is important to note the difference between 'avoiding' tax and 'evading' tax. This article describes some of the ways in which individuals or organisations can legally minimise their tax bill. This includes both residential and commercial purchases in England and Wales. Tax evasion, on the other hand, is illegal, and tends to rely on acts like falsifying accounts. Actions like these are inevitably discovered and punished severely.

The majority of ways in which you can hope to avoid stamp duty tend to have a fairly fundamental effect on the transaction itself; often going as far as determining which property or shares you will buy. If you are hoping to minimise a Stamp Duty Land Tax bill (the duty paid on property transactions) then one of the most enticing tax-breaks available relates to property in so-called 'disadvantaged areas'. This is a scheme devised by the government to encourage the regeneration of less successfully developed areas by offering a tax incentive to those who purchase property there. Currently the non-payment threshold for SDLT is raised to £150,000 on property bought in these areas.


The HMRC and DirectGov websites have search engines through which you can ascertain whether or not individual postcode areas are eligible for this form of tax relief. First-time buyers also now qualify for an exemption on residential purchases with a value up to £250,000. If you are jointly purchasing a property, both parties must be first-time buyers in order to qualify for the exemption.


Sale Prices


It sounds rather obvious, but perhaps the most effective way of mitigating your SDLT liability is by paying less for your property. If you can negotiate a price that is lower than the non-payment threshold (currently set at £125,000) then you stand to save a considerable amount of money. Indeed, simply reducing the purchase price to below the threshold of any of the subsequent brackets can lead to large savings, particularly if the price drops below £250,000 as any sales of property above this price are subject to a 3% tax up to £500,000 and 4% above this figure.

While you are thinking about minimising your tax bill on property, it is also worth considering the tax implications that would apply were you ever to sell up. In this case you should note that fixtures and fittings, as well as outbuildings like a garden shed, are classed as 'wasting chattels'; this means that they are exempt from Capital Gains tax. As a result, you shouldn't be reticent about selling a ready-fitted house because of any potential tax expenses.



For more information, please contact Zach Kendal initially on 0870 063 8661 and you could save your Stamp Duty Tax costs up to 50% or more on your purchase today! Remember, we can still have our Tax Consultants help you Save your Stamp Duty costs EVEN if you have already exchanged - don't delay call 0870 063 8661 now. 

Independent Stamp Duty Mitigation; Stamp Duty Exemption Planning Information. If you could potentially save £1000's by using Stamp Duty Land and Tax planning strategies, why would you NOT want to save your money? For information of users: This material is published for the information of clients. All stamp duty and land tax mitigation enquiries are referred to a network of selected tax professionals.