3% SDLT extra

[d000hg]

Now we have the sensible sliding scale of SDLT, where does the 3% go? Do you pay a flat rate of 3% on the whole value, as an additional fee to the sliding scale amount?

[diseasex]

0% SDLT band is now £0 - £40,000. There is no 3% BTL surcharge on this.

So, go oop North and fill yer boots.

??

SDLT rates and thresholds for residential properties
SDLT is charged at increasing rates for each portion of the purchase price.

Use HM Revenue and Customs’ (HMRC) SDLT calculator to work out how much you’ll pay.

Property purchase price SDLT rate from 4 December 2014
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

[ChimpMaster]

I've got a question - does this 3% apply to currently 0% SDLT totaling of 3% for cheapest properties?

0% SDLT band is now £0 - £40,000. There is no 3% BTL surcharge on this.

So, go oop North and fill yer boots.

[diseasex]

Apparently successfully faking your death is quite effective.

I've got a question - does this 3% apply to currently 0% SDLT totaling of 3% for cheapest properties?

[d000hg]

Has any aggressive tax avoidance strategy ever worked?

You can spot a loophole and exploit it, like some scheme users on this forum, but you will eventually end up paying twice the amount once HMRC sniff you out.

Retrospection is not the norm so I thought the early adopters normally DID profit, then loopholes got slammed shut as soon as it started becoming more common i.e. worth the effort to prevent?

[LucidDementia]

Has any aggressive tax avoidance strategy ever worked?

You can spot a loophole and exploit it, like some scheme users on this forum, but you will eventually end up paying twice the amount once HMRC sniff you out.

Apparently successfully faking your death is quite effective.

[fullyautomatix]

Has any aggressive tax avoidance strategy ever worked?

You can spot a loophole and exploit it, like some scheme users on this forum, but you will eventually end up paying twice the amount once HMRC sniff you out.

[ChimpMaster]

SDLT is still payable if your company buys the property.

The only thing I can suggest is that you buy (actually complete on) the second property prior to April.

[d000hg]

1-man Ltds are already under scrutiny so using them for further avoidance doesn't seem terribly good however they probably wouldn't do anything about it until there was evidence it was becoming popular by which time you'd have yours.

[AtW]

It would not take long for such companies to be target for some special tax treatment, like say higher corp tax or CGT in order to "provide affordable homes to first time buyers".

[ASB]

Chaps

In light of the increase in SDLT does it make sense to buy my second house ( current would become BTL) via the limited company! That will save £20k on SDLT on a 600k purchase which is sizable!! Also easier to manage inheritance and no cgt if I live in it till I drop!!

Cheerios

If you are planning to live in to check the bik implications of company provided occupation. It would be a good idea to do it sitting down.

if planning to let it it depends on a lot of factors. But probably not.

[jonbon]

Chaps

In light of the increase in SDLT does it make sense to buy my second house ( current would become BTL) via the limited company! That will save £20k on SDLT on a 600k purchase which is sizable!! Also easier to manage inheritance and no cgt if I live in it till I drop!!

Cheerios