SDLT & the Conveyancers Liability - An Essential Update

Introduction

There has been no single applicable rate of SDLT for some time and we now have residential, commercial, additional properties and non-resident surcharges. Added to this is the fact that with property price inflation more clients have become liable to this tax which is no longer a burden solely for the wealthy. All of this means the conveyancer has to be aware of all of the details and administration of the tax - it has even been suggested conveyancers act as unpaid tax collectors for HM Government!

This adds to potential liability both to the client and potentially HMRC if you get it wrong.

What You Will Learn

This webinar will cover the following:

• Rate and relief changes ‘Mini Budget’ September 2022
• Hyman and Goodfellow v HMRC - dispute over land attached to houses and James and Charlotte Averdieck v HMRC - is an accessway mixed use or residential?
• The 2% surcharge on purchases by non-resident buyers - individuals, joint owners, companies - what is the definition of ‘resident’?
• SDLT arising on gifts and transfers between joint owners, spouses and civil partners
• Higher rate on additional dwellings - the 3% surcharge:
• Which transactions do the higher rates apply to and which will not?
• Problems over buyer owning other properties, replacement main residence, joint ownership, adult buying for offspring, foreign property and multiple dwellings
• A detailed look at HMRC guidance, definitions of a ‘dwelling’ and a ‘major interest’ for these purposes and the four essential conditions which have to apply for a property to be subject to higher rates
• Individuals - purchase of single dwelling, multiple dwellings, joint purchasers, married couples and individuals ‘treated as’ owning a property, trusts, trustees and beneficiaries
• Companies and other non-individuals
• Interaction with multiple dwellings relief, filing a return and when a refund may be claimed
• ‘Granny annexes’ - special rules
• Multiple Dwellings Relief - time limits, mixed use properties and when is a house not a house for MDR?
• First Time Buyer Relief:
• Eligibility, price limits, conditions to be met
• Joint buyers and relationships that have broken down
• Definitions of a first-time buyer and dwellings, linked transactions
• Extension of relief to choices under shared equity purchases
• Land Transaction Tax (Wales): The commercial and residential rates, reliefs, and a general overview
• Avoidance: SDLT Avoidance schemes, HMRC attitudes, penalties and professional misconduct; Hannover Leasing Europa v HMRC on SDLT partnership rules and the general SDLT anti-avoidance rule
• Other Reliefs: Charities, Registered Social Landlords, Local Authorities and Developers, Freeports
• UK residential property developer tax
• Importance of valuation used for calculating SDLT - Zyrieda Denning and others v HMRC and residential or commercial rates? Khatoun v HMRC

This webinar was recorded on 23rd February 2023