Is SDLT charged on AST Agreement/Counterpart?

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    Is SDLT charged on AST Agreement/Counterpart?

    I am letting a house on AST. Have been told that I need to pay duty, otherwise the agreement isn't admissable in court as evidence. Is this right? And LL and T have an agreement each to keep, each signed by the other? So does each copy need stamping? This is the first time I've done this, so pardon my ignorance, but I thought if I worked through the process with as much info as I could digest and then understand why each step was taken, then it would stand me in good stead for the future.... And would the tenant normally pay for this or the LL? Thanks

    #2
    Nope, stamping is no longer required. Also, each copy of the tenancy agreement should be signed both parties.

    Comment


      #3
      To be technically correct, an AST is not liable to stamp duty provided that the total rent payable over the term of the lease does not exceed £5000. The term is the period for which the lease is granted i.e six months or 1 year e.t.c. I obtained this information from the stamp duty enquiry line some time ago: 0845 6030135 if you have any further queries.

      P.P.
      Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

      Comment


        #4
        I think that may have been technically correct a couple of years ago.

        Comment


          #5
          What?

          Raggy. Cat Cuddler is quite right about one AST being signed by the landlord & the counterpart by the tenant. Where do you get the idea that both copies have to be signed by both parties? - They don't.

          P.Pilcher is in the dark ages about stamp duty as SDLT came into being in December 2003 and the limit is now £60,000 for the value of a residential lease before SDLT becomes payable, and then it's by the TENANT - the landlord does not have to become involved!
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

          Comment


            #6
            Well, I can only add that in early January this year I successfully obtained a possession order from my local county court using the accelerated procedure. My 6 month AST at a rental of £415 pcm, one of the documents required to be produced, was not stamped.

            P.P.
            Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

            Comment


              #7
              What Wickerman probably means is that if the commencement of the tenancy agreement pre-dates 1 December 2003 then it will still be required to be stamped but bearing in mind that the limit was changed to £5,000 as P.Pilcher has stated in an earlier post. The old rules only apply from February 1997 and before.

              The Stevenage agent to which he refers might not be aware of the SDLT which replaced the old rules. You'd be surprised at the number of letting agents who haven't picked up a book on the subject nor consulted the internet [that's easy enough in itself!] and are still in the dark ages about many aspects let alone SD. How they ever get any business beats me sometimes!
              The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

              Comment


                #8
                was stamping ever necessary?

                I know of another case like Pilcher's - successful accelerated possession proceedings based on an AST agreement that was theoretically liable to stamp duty but which had not been stamped.

                Anyway, on what grounds could a court refuse to grant possession in such a case? HA 1988 requires that possession be granted if all the conditions laid down in the act are fulfilled, but nowhere does it stipulate that the lease must be stamped.

                Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

                Comment


                  #9
                  SDLT on shorthold tenancy agreement

                  If I rent a flat out for more than £5000 p/a on 6 monthly short-hold agreements then is stamp duty payable?

                  If so how do I go about paying it?

                  If I keep the same tenant and don't change the rent then does the agreement have to be re-signed each 6 months and therefore Stamp Duty paid all over again?

                  Comment


                    #10
                    SDLT on AST Agreement/Counterpart?

                    I have served an S21 on a tenant, she did not leave so I went to court using the accellerated procedure. The tenancy agreement is a standard AST, no problems there but I did not get it stamped by the Inland Revenue. Is this likely to raise any problems? The court have sent me a copy of the 'Notice of Issue' which they have sent to the tenant, giving her 14 days to lodge a defence.

                    Comment


                      #11
                      Almost certainly no stamp duty need be paid on an AST. 0845 6030135 is the number of the stamp duty enquiry line if you want to check.

                      P.P.
                      Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

                      Comment


                        #12
                        I dont think the courts are bothered about the TAX implications of the document, just wether it is legal. Anyway, what is the alternative, not to proceed with eviction?, surely not.

                        On another point, as of last Monday (April 18th) the Inland Revenue and HM Customs & Excise no longer existed, being replaced by HM Revenue & Customs. So who knows who is bothered.

                        Comment


                          #13
                          Thanks for the phone number PP, as from 2003 the threshold for notification is £120,000 so for most of us mortals stamp duty is unnecessary.

                          Comment


                            #14
                            If the tenancy commenced before 1 December 2003 it may be advisable to get the agreement stamped to guarantee that the Court will accept it if you are planning to rely on it in Court

                            Leases will only attract SDLT where the lease value, or NPV, exceeds £60000 pa
                            My advice is not based on formal legal training but experience gained in 20+ years in the letting industry.

                            Comment


                              #15
                              Oaktree dont you mean 6000pa?

                              Mr Woof, your getting mixed up with stamp duty on purchases and stamp duty on rents paid.

                              Comment

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