Stamp Duty On A Lease Extension Of A Buy to Let Property?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Stamp Duty On A Lease Extension Of A Buy to Let Property?

    Do I have to pay stamp duty on a buy to let property that I have owned for 30 years when I'm extending the lease? The property is rented out. Is there a calculator for this? I understood that SDLT is only applicable if the extension price is over £125,000. My extension price is no where near that! Thanks.

    #2
    Is the extension price above £ 40,000 ?
    It may apply 3%.
    I am only guessing so after introduction of the added 3% stamp duty on BTL.
    I hope that some other Forumer will clarify, mine is only a "guess".

    Comment


      #3
      The website below suggests if the cost of lease extension is over £40K, you will be required to pay SDLT at 3% on difference between the cost paid and £40K.

      :https://www.gov.uk/guidance/stamp-du...-need-a-return

      Comment


        #4
        Originally posted by Gordon999 View Post
        you will be required to pay SDLT at 3% on difference between the cost paid and £40K.
        My interpretation is that 3% would apply fully on the amount > £40K.
        Hence £60K cost of lease, would have £1.8K SDLT.

        Comment


          #5
          You may be right based on this website :

          https://www.calculatestampduty.co.uk...seprice/50000/

          Comment

          Latest Activity

          Collapse

          • tax / cgt question for renovating property
            by DroidEgg
            I purchased a shell of a house that was structurally sound but needed complete refurbishment. The house had been ransacked many items. eg All the radiators & copper pipe had been ripped from the walls.
            A builder completed all the work from start to finish. The final cost was an all-in job...
            02-07-2022, 10:33 AM
          • Reply to tax / cgt question for renovating property
            by Gordon999
            The underlying principle is that the cost of buying a property in good condition is clearly capital expenditure. Hence the cost of buying a dilapidated property and putting it in good order is also capital expenditure....
            02-07-2022, 17:21 PM
          • Reply to tax / cgt question for renovating property
            by dp17
            See the following property income manual, from HMRC , may be of some help.

            https://www.gov.uk/hmrc-internal-man...manual/pim2030...
            02-07-2022, 16:19 PM
          • Reply to tax / cgt question for renovating property
            by Section20z
            It may certainly be beneficial to allocate some of those expenses to running costs, electrical work required for the NEIC certainly is solely for the letting. Depends how much profit you are likely to make though, you'll have to do some sums .
            02-07-2022, 13:00 PM
          • Reply to tax / cgt question for renovating property
            by Gordon999
            If you purchased a building shell , and had the builder carry out the refurbishment work , then enter all expenses as an improvement in your records. You paid the builder by cheque and should have kept bank statements to show all payments .

            No need to break down the cost into operating...
            02-07-2022, 11:59 AM
          • Reply to tax / cgt question for renovating property
            by jpkeates
            I'd suggest that based on that description, all of the work was probably capital.
            02-07-2022, 10:43 AM
          • Reply to CGT query
            by Gordon999
            I believe your solicitor has to prepare a Deed of Trust which transfers 60 % interest in the property from wife to you.

            You need to make clear to your solicitor that Deed is for HMRC only and not for registration at Land Registry

            After signing the Deed , you...
            01-07-2022, 16:51 PM
          • CGT query
            by vik238754
            Hello. Since 2013 my wife and I own a property as tenants in common where the beneficial interest split is 90% her and 10% me. We are now looking to sell the property. I have a large CGT loss and using the HMRC CGT calculator I have calculated that if I change the split to 70% me and 30% my wife...
            23-05-2022, 19:37 PM
          • Reply to CGT query
            by vik238754
            The existing declaration states 10:90 beneficial interest not legal interest
            01-07-2022, 13:06 PM
          • Reply to CGT query
            by Gordon999
            The Declaration changing the beneficial interest to 70:30 is prepared only for showing to the Tax Office .

            The existing registration of 10% :90% legal interest at Land Registry does not change and the Mortgage Lender has already accepted this situation. .
            01-07-2022, 12:18 PM
          Working...
          X