SDLT on bulk purchase/transfer

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    SDLT on bulk purchase/transfer

    My partner and I own several properties - some in my name, some in partner's name and some jointly. For personal tax and IHT planning we are moving them into an LLP.
    Are we able to claim SDLT relief for 'bulk purchases' and pat SDLT at (say) 1% rather than 5% (value >£1m). Previously HMRC treated this type of transaction as 'linked'.

    TIA

    Century

    #2
    Originally posted by Century View Post
    My partner and I own several properties - some in my name, some in partner's name and some jointly. For personal tax and IHT planning we are moving them into an LLP.
    Are we able to claim SDLT relief for 'bulk purchases' and pat SDLT at (say) 1% rather than 5% (value >£1m). Previously HMRC treated this type of transaction as 'linked'.

    TIA

    Century
    There is SDLT relief available for the "BTL buyer" -not you as "seller" according to this link :

    http://www.mills-reeve.com/files/Pub...lief_Sep11.pdf

    Comment


      #3
      i think disposal of property may give rise to capital gains tax and you should seek advice from tax accountant.

      Comment


        #4
        Originally posted by Gordon999 View Post
        There is SDLT relief available for the "BTL buyer" -not you as "seller" according to this link :

        http://www.mills-reeve.com/files/Pub...lief_Sep11.pdf
        Sorry, I was not clear. The LLP is purchasing the properties, hence the SDLT - which will be payable by the buyer. But as the LLP partners are myself and partner, we will have to introduce the capital into LLP to enable it to pay the tax!
        Wrt CGT - properties were all purchased within the last 4 years and prices have been static, hence CGT not a problem.
        We have conflicting advise from solicitor and accountants regarding SDLT.

        Comment


          #5
          Originally posted by Century View Post
          Sorry, I was not clear. The LLP is purchasing the properties, hence the SDLT - which will be payable by the buyer. But as the LLP partners are myself and partner, we will have to introduce the capital into LLP to enable it to pay the tax!
          Wrt CGT - properties were all purchased within the last 4 years and prices have been static, hence CGT not a problem.
          We have conflicting advise from solicitor and accountants regarding SDLT.
          Perhaps this hmrc leaflet may help you discuss with your conveyancing solicitor :

          http://www.hmrc.gov.uk/so/examples-multi-dwellings.pdf

          Comment


            #6
            I've never had to look at this subject in any detail but I think you should refer the solicitor/accountants to the SDLT "relief for multiple purchases" legislation brought in under the 2011 Finance Act at S.83 and Schedule 22. In a nutshell, it appears to provide for dividing the overall purchase price by the number of properties to arrive at an average figure on which a lower rate of SDLT can be paid. Here's an HMRC explanation that may help:


            http://www.hmrc.gov.uk/so/draft-guide-multi-dwell.pdf

            As ever, there are various exclusions to be checked out!

            One other thing that occurs is - if for some reason this relief doesn't apply, do the transfers to the LLP have to be treated as linked anyway? If done at different times with one transaction not being dependent on another what is it that links them together? Is there an LLP agreement in place and would that be the link?

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