SDLT for Conveyancers - Avoiding the Potential Pitfalls
We can’t all be experts in taxation law but tax and especially SDLT is increasingly adding to the conveyancer’s burden. This adds to potential liability both to the client and potentially HMRC if you get it wrong.
No longer do we have a single applicable rate for all transactions and with property price inflation more clients are falling liable to pay this tax. Liability to SDLT cannot be separated from the conveyancing process whether residential or commercial and knowing the pitfalls is essential to minimising exposure to liability.
What You Will Learn
This webinar will cover the following:
- 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.
- How will the new UK residential property developer tax work?
- SDLT dispute over land attached to houses - is extra garden land still residential?
- Importance of valuation used for calculating SDLT Zyrieda Denning and others v HMRC and residential or commercial rates? Khatoun v HMRC
This pre-recorded webinar will be streamed at 12:30pm on Monday 15th November 2021 and will remain available to view by delegates who have registered by then for 90 days.
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