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Whether the market value rule in para 5 of sch 4 FA 2003 overrides the rules for overages or works, exchanges or the SDLT partnership rules?

Home Forums Patrick Cannon Whether the market value rule in para 5 of sch 4 FA 2003 overrides the rules for overages or works, exchanges or the SDLT partnership rules?

This topic contains 1 reply, has 1 voice, and was last updated by  John Shallcross 14th December 2017 at 4:50 pm.

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  • #889 Reply

    E McCall

    Client has been told by their solicitor that because the property they have purchased is buy to let, then they are liable to the higher rates of SDLT, however this is their only property that they own worldwide.

    They have been unable to produce legislation that backs up their claim.

    We found legislation that states that it only applies to additional properties.

    Is there something we may be missing?

    #890 Reply

    John Shallcross

    I expect the legislation you have found is FA03/Sch4ZA/para3(4) setting out Condition C for the 3% surcharge to apply. This requires that for the surcharge to apply the buyer must have a major interest in another dwelling.

    There are some things to check: if any of the joint buyers is a company for example the surcharge will apply whether or not other properties are owned.

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