delite1 Posted December 6, 2005 Share Posted December 6, 2005 Taken from PMT board, It looks like a pretty significant development... for those relaying on gearing... http://business.scotsman.com/finance.cfm?id=2347552005 BUY-TO-LET investors, are being hit with big bills after the Revenue and Customs began exploiting a completely unrelated measure included in last year's Finance Act to clamp down on stamp duty avoidance. ...some investors have recently been shocked to discover that instead of paying stamp duty on each individual property, as they expected, the Revenue has begun totalling up the value of properties bought and applying the highest rate of tax to the aggregate sum. Quote Link to comment Share on other sites More sharing options...
Casual Observer Posted December 6, 2005 Share Posted December 6, 2005 Taken from PMT board, It looks like a pretty significant development... for those relaying on gearing... http://business.scotsman.com/finance.cfm?id=2347552005 BUY-TO-LET investors, are being hit with big bills after the Revenue and Customs began exploiting a completely unrelated measure included in last year's Finance Act to clamp down on stamp duty avoidance. ...some investors have recently been shocked to discover that instead of paying stamp duty on each individual property, as they expected, the Revenue has begun totalling up the value of properties bought and applying the highest rate of tax to the aggregate sum. Good! You can never beat the taxman, he will alkways catch up. Quote Link to comment Share on other sites More sharing options...
non-FTBer Posted December 6, 2005 Share Posted December 6, 2005 For a BTLer with 2 properties at £249,999 a piece.. that would move the stamp duty from 1% to 3%. He would have to find an extra £10K to pay the tax man. Quote Link to comment Share on other sites More sharing options...
Guest Riser Posted December 6, 2005 Share Posted December 6, 2005 Does this just apply to properties in a single development, or all properties in the portfolio ? How does the revenue track a portfolio? Quote Link to comment Share on other sites More sharing options...
CrashConnoisseur Posted December 7, 2005 Share Posted December 7, 2005 Does this just apply to properties in a single development, or all properties in the portfolio ? As I understand it, it would apply to properties bought from the same developer. Measures introduced in the Finance Act 2004 have enabled HM Revenue and Customs to apply the existing rules more strictly. See 'SDLTM30100 -- Application: Linked transactions FA03/S108': http://www.hmrc.gov.uk/manuals/sdltmanual/SDLTM30100.htm Linked transaction are those which form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them. ICTA88/S839 defines when parties are connected. and 'STAMP DUTY LAND TAX: STAMP DUTY REFORMS': http://www.lgold.co.uk/index.php/mnu/7 Linked transactions Linked transactions are those that form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or any person connected to the purchaser. The rate of SDLT payable in these circumstances will be determined by the sum of consideration paid for both transactions. [...snip...] The transactions do not have to take place on the same day to be linked, they could even be years apart, but if they are part of an arrangement, scheme or series of transactions they will still be linked. Also see 'General (main property discussion here) -- Stamp Duty -- Linked Transactions': http://www.landlordtrader.co.uk/thread_357...ansactions.html Quote Link to comment Share on other sites More sharing options...
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