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SDLT background

Background

SDLT was introduced in 2003, replacing Stamp Duty for land transactions. For many of the years that followed the standard ‘slab system’ applied, with the main concerns for those calculating the SDLT charge being the value and nature of the property.

However, since the introduction of the Annual Tax on Enveloped Dwellings (ATED) in 2013, HM Treasury has introduced new legislation targeting residential property (higher rate for additional purchases of residential property from 6 April 2016).

The SDLT statute book is now more complex than ever and, given the current trend, it is expected to continue down this path. With this in mind, it is becoming increasingly difficult to remain compliant with the ever-changing rules.

Some high-risk transactions include:
 
  • Linked transactions;
  • Transactions involving multiple properties;
  • Transactions involving purchases of additional residential properties;
  • Transactions involving corporate entities;
  • Transactions involving leases;
  • Unusual transactions (contingent or uncertain consideration);
  • Site fine agreements