SDLT Multiple Transfers / Sales

[Deborah Castle]

I want to transfer 12 personally owned properties to a business that I have set up. Has any one else done this? Does anyone know how to calculate the SDLT and what the applicable tax rates are.

My accountant and solicitor will not give me a definitive calculation of the SDLT. They seem to be confused as to whether the properties are averaged or treated individually.

 

[Richlist]

This is probably not the answer you want but unless the rules have changed recently, my understanding of the rules are that when 2 or more properties involve the same seller and buyer they are treated as a linked transaction.

As you have a 10 property linked transaction, all the properties will be added together and SDLT will be charged on the total value.

If you type into your browser....SDLT on multiple transactions......there is lots of info available.

So for example if the properties are worth £200,000 each x10 = £2million.......SDLT on £2million = £153750

Ouch!!!!!

As a comparison, the individual SDLT levied if the transactions were not linked would be £1500 per property x10 = £15000 in total.

Current rates are:

0 - 125000 = zero

125001 - 250000 = 2℅

250001 - 925000 = 5%

925001 - 1.5 million = 10%

Above 1.5 million = 12℅

I think this is one of the reasons most of us are reluctant to transfer our existing property portfolio into a limited company.

Good luck

 

 

 

[Melboy]

I would be very dismayed that the professional people I am about to employ cannot give me a definitive answer on the SDLT question even if I gave them a month to think about it and to come back to me with an answer.

I believe Richlist answer to your question is probably near correct.