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Darkman

Stamp Duty Land Tax?

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Stamp duty land tax? Apparently I'm responsible to pay for this as the tenant?

I don't recall seeing this mentioned on the old covering letter. Why the change now?

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Stamp duty land tax? Apparently I'm responsible to pay for this as the tenant?

I don't recall seeing this mentioned on the old covering letter. Why the change now?

You are not required to pay Stamp Duty, only a property buyer should pay it.

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I imagnie you are accepting responsibility for it, in the event that there might be any. Presuming your lease to be for less than 7 years, I cannot conceive that there would be such a charge.

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The SDLT legislation is only a few years old. There were some changes to the old Stamp Duty to capture leases structured so as to avoid the old SD tax.

I think they botched the legislation and, fearing unintended interpretations of the new SDLT rules, agents started inserting this clause to cover their backsides.

@2: It's not strictly true to say that only the property buyer should pay it. It depends on the present value of leasehold payments. But it would be pretty unusual to go over the threshold on, say, a 1-year tenancy agreement.

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If the value of your contract is greater than the SDLT threshold, then you would be liable to pay SDLT, as it applies to any transaction in land, not just freehold sales.

I work with senior execs who come to the UK for 2-3 years, with their employers renting v. expensive London properties for the duration. A recently-closed 'loophole' made it income tax efficient to pay the full amount upfront - this would usually make the transaction subject to SDLT.

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