Matthew Posted December 19, 2006 Report Share Posted December 19, 2006 Everything I read on the matter seems to contradict what has been stated on another site. I have a property let to 5 tenants @ £300 per month each on seperate tenancy agreements. Individually this falls below the £5K per annum, but together it is above. Are they liable to SDLT? I also looked at something stating that when a property has generated over £60K in income since a landlord has owned it, the tenants are liable to pay stamp duty. The calulations I see show it to never really amounts to very much, maybe a few hundred over three years on a property costing £4K per month. Does anybody have a good understanding of this? Also what are peoples views on tenants paying stamp duty? I guess it makes sense, since it costs so much for homeowners who may change houses every 10 years (these days an average of about £5-£10K), is it fair that renters don't pay much. Perhaps 10% of their rent if over say £500 per month? Otherwise is it discimination against homeowners? Just a question, but interesting to hear other peoples ideas? Link to comment Share on other sites More sharing options...
GPEL Posted December 19, 2006 Report Share Posted December 19, 2006 Absorb the cost, if any. Make a point of it to any applicants prior to the start of a tenancy and it's likely to cost you more in the long run through withdrawn applications, longer voids etc. Link to comment Share on other sites More sharing options...
Trenners Posted December 20, 2006 Report Share Posted December 20, 2006 Matthew, The laws on stamp duty relating to assured shorthold tenancies changed in December 2003 and you no longer need to have tenancy agreements stamped unless the lease value exceeds £125K. Hope that helps ...... Mark Link to comment Share on other sites More sharing options...
Matthew Posted December 21, 2006 Author Report Share Posted December 21, 2006 Thanks Mark, I read that, but then it said that each lease extension adds to the amount, so a tenant paying £2,000 a month which stays at the property for 10 years would have paid £240K and thus be liable to pay. In reality it is unlikely somebody would stay for 10 years, but in central London I can amagine people falling within this after maybe 4 or 5 years. But I still think if you think about it, why should renters not pay Stamp duty land Tax? I think somebody paying £600 a month should pay about 10% every month (£60) on stamp duty, which is still only £720 a year, less than what the average person pays who moves house every 8 years. I think the level of stamp duty is unfair, but it is here to stay, so why should renters be exempt? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.