Stamp Duty on Lettings (Payable by tenants)

[Matthew]

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?

[GPEL]

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point of it to any applicants prior to the start of a tenancy and it's likely to cost you more in the long run through withdrawn applications, longer voids etc.

[Trenners]

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

[Matthew]

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?