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laughing_goat

Tenants Pay Stamp Duty

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I was browsing the net the other day and notice a site saying that the tenant is responsible for stamp duty (botton of page on this link). They link to the inland revenue but the document doesn't exists. I have since tried to find something on the net with little joy, the only thing I have descovered is it applies to rents of more than £5,000PA.

I do understand that stamp duty doesn't just apply to house purchases, but I have never heard of this before.

Does anyone know what this is about, or has any information?

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I was browsing the net the other day and notice a site saying that the tenant is responsible for stamp duty (botton of page on this link). They link to the inland revenue but the document doesn't exists. I have since tried to find something on the net with little joy, the only thing I have descovered is it applies to rents of more than £5,000PA.

I do understand that stamp duty doesn't just apply to house purchases, but I have never heard of this before.

Does anyone know what this is about, or has any information?

I think (again not absolutely sure) it is on rents over £60,000 pa (that would be £5,000 per month0.

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I think (again not absolutely sure) it is on rents over £60,000 pa (that would be £5,000 per month0.

I'm pretty sure it was £5,000pa, I can't rememeber where I checked it now.

I'll see if I can find it again.

I found this quote

Furnished Lettings - A letting agreement for any definite term less than a year of any furnished property where the rent exceeds £5,000 attracts a fixed duty of £5.

If the annual rent on a lease for 7 years or less is £5,000 or below there is no duty to pay. This also applies in cases where the term is less than 1 year and the rent for the period is £5,000 or below.

on this web page.

I may be completely misunderstanding this!

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Read the top of that page :)

For instruments executed on or after 1 December 2003, Stamp Duty applies only to transfers of stock and marketable securities, and to certain transfers of interest in partnerships.

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Read the top of that page :)

For instruments executed on or after 1 December 2003, Stamp Duty applies only to transfers of stock and marketable securities, and to certain transfers of interest in partnerships.

So it does, silly me :rolleyes: , thanks MrShed

However, that still posses the question about what the letting agency mentioned in the first thread are refering to?

I may ask them, at the risk of receiving their marketing c**p.

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For instruments executed on or after 1 December 2003, Stamp Duty applies only to transfers of stock and marketable securities, and to certain transfers of interest in partnerships.

Yes but stamp duty land tax applies from that date.

The rates are calculated as a percentage of the total rents payable under the lease however if this is less than £60,000 then the rate is zero and nothing is payable.

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Yes but stamp duty land tax applies from that date.

The rates are calculated as a percentage of the total rents payable under the lease however if this is less than £60,000 then the rate is zero and nothing is payable.

So I was right eh!

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So I was right eh!

Not quite but close. It is the total value of the rents payable under the agreement, not the annual rental.

So for example a tenancy for £60,000 PA would attract nothing if it were for 12 months but were it for any longer then it is taxable on the excess only (not the whole amount as for transactions in land)

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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