Do You Pay Stamp Duty on a Commercial Lease?
SDLT on commercial leases can be very complex. Many tenants are unaware that Stamp Duty Land tax is payable on commercial leases – and may be...
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Patrick Cannon advises and represents non-UK resident clients on SDLT on property transactions in the UK. Stamp Duty Land Tax is complex, and a failure to comply with HMRC’s requirements can lead to investigations or litigation – making it absolutely key to instruct a highly experienced specialist SDLT barrister.
Patrick Cannon offers guidance on the 2% SDLT surcharge for non-UK buyers – providing advice on legitimate ways to avoid or mitigate this extra tax. His services also include filing SDLT returns for non-residents and managing correspondence with HMRC. He also has considerable experience in representing corporate and private clients in tax tribunals and in the courts. For more information or to make an appointment, contact Patrick Cannon here.
Stamp Duty Land Tax must be paid on all property transactions in England and Northern Ireland (although there some exemptions, such as for first-time buyers or for gifts). SDLT carries a higher rate for non-UK buyers.
Overseas companies or individuals are subject to a 2% surcharge on top of the normal SDLT rates when they buy land or property in England and Northern Ireland.
The surcharge applies if one or more of the buyers of a property is a non-resident.
In order to have UK resident status (thus avoiding the surcharge), a purchaser must be present in the UK for at least 183 days during any continuous 365-day period immediately prior or immediately after the transaction date.
There are special rules for co-purchasing spouses, partnerships etc.
If a company is not UK resident for corporation tax purposes, then it must pay the 2% surcharge on any property purchase in England and Northern Ireland.
A company that is resident in the UK, but is a ‘close company’ and meets the non-UK control test under paragraphs 9 and 10 of new Schedule 9A is also liable for the 2% SDLT surcharge.
The SDLT exemptions and criteria for resident or non-resident buyers are complex. Any individual or company who might be considered non-UK resident buying a property should consult with an expert tax lawyer to review their liability or potential mitigation of the SDLT surcharge.
Yes, the SDLT surcharge can be avoided. Where a non-UK resident off-plan buyer flips the property to a UK resident, the surcharge will not apply, where the flipper gets full sub-sale relief from SDLT.
Patrick Cannon has extensive experience in the field of SDLT for non-UK resident property buyers. He has an in-depth knowledge of the complexities of the 2% SDLT surcharge and can advise on legitimate ways to avoid the extra tax. Patrick can also handle all of your correspondence with HMRC and file your returns under power of attorney, as well as defend you in a tax tribunal, advise you in cases of HMRC investigations and support you in claiming refunds.
To make an appointment with one of the UK’s leading SDLT barristers, contact Patrick Cannon here.
Other SDLT Areas Patrick Can Advise On:
Yes. Individuals who become UK-resident after submitting their land transaction return have up to two years to amend their land transaction return in order to claim repayment of the non-UK resident SDLT surcharge.
SDLT for overseas buyers will usually be at a top rate of 17% of the purchase price. This is either a flat rate of 17% in the case of the existing 15% higher rate on companies buying a dwelling (subject to the available SDLT exemptions), or in other cases, on the top slice of the purchase price above £1.5m.