Hello, I'm Keith and happy to help you with your question.
SDLT is based on the consideration. The following rule [Gov UK advice] may apply:
'If 6 or more residential properties form part of a single transaction If 6 or more properties form part of a single transaction the rules, rates and thresholds for non-residential properties apply. The amounts paid for all the properties in the transaction must be added together in order to establish the rate of tax payable.'
The rate would be 7% on a GBP 3m transaction.
I do hope I have helped you with this question. SDLT is usually handled by the solicitor responsible for the conveyancing. Historically solicitors' monopoly on conveyancing was granted in return for their collecting Stamp Duty on the Government's behalf.
I suggest that on the subject of Capital Gains Tax (CGT) that you are sadly in error. Any disposal attracts CGT, even giving property away.
SDLT is charged on the consideration. I have noted what you have told me about the manner in which the sale is being conducted. I have merely warned you that HMRC might consider that the transactions are linked and 7% as opposed to 1% is the rate applicable. Please don't shoot the messenger.
If other experts feel that additional information is appropriate Just Answer protocol permits over posting.
Thank you for your opinion. You asked a specific question and received an appropriate response. SDLT is based in consideration.
respectively i can not see where you have answered the question . the question asked is the consideration that SDLT is based on .......
the value of the properties being taken by each party or...
the value of the debt taken by each party.?
i believe that it was me who refered to consideration at the outset,...... you refered me to an extract refering to price paid (there is no price paid here ) and surely..... it is not the partnership that would suffer the SDLT how could it be when ownership is moving from the partnership to an indidual who is "purchasing /acquiring it " surely the purchaser pays SDLT and not a vendor.
there is an arguement to say that the debt is internal but it is not so in HMRC directives ...in fact they refer to the value of a property which is taken over with an attaching debt and state that what is being acquired is the value of the property plus the debt that is being dispossed of but then they go to say that it must be fair and therefore the debt itself is dropped. however the stamp office when contacted advised (by phone ..hence caution ) that it was the debt , however it appears that you are unable to answer the question . what is consideration for stamp duty purposes in this case?
exactly ! sorry your replies are and contradictory and in error , you say its the partnershipwho pays ..i say it is the individual.
you say it is the value plus the debt , it is not ....the debt is excluded.
you say CGT is due on the spilt of properties ...it is not where it is a single split with no cash changing hands. you say the 6 property rule may apply but appear to misquote it by omitting to say that when the values of the properties are added together the total sum must be divided by 6 to arrive at the chargeable sum . if any of my points are clearly wrong please let me know that is what i am asking for .once again i come back to ...what is consideration...stamp duty is a difficult area which is why im asking
There is no pint in commenting on a poor rating.
i dont understand what you mean . i take no pleasure in posting a poor rating but there were too many errors and to rely on the answers would have been embarassing when challenged. as i say you are capable no doubt in many other areas but can i suggest not well enough researched in this one before your reply.