Does the 3% SDLT surcharge apply where a trades union purchases a dwelling?
“Acting for a national trade union (not a limited company, no charitable status etc.). They are entering into a transfer of equity for residential property. There is no cash changing hands but they are releasing the transferor from a legal charge and let’s presume that that charge is in excess of £40,000 but a chunk less than £125,000. The trade union is of course unable to hold title to land, so it will go into the names of the current elected national trustees. Do people agree that SDLT is going to be payable at the higher rate of SDLT, and therefore at a rate of 3% of the amount outstanding under the legal charge which is to be discharged?”
Source: BLG Member
I agree. As the purchaser is not an individual the 3% surcharge will apply to the consideration which will be the amount of the debt which is assumed or discharged.
At the time of publication this response was correct however as tax legislation and practice change from time-to-time you should take specific advice before taking any action.
If you require further guidance on SDLT please see Ann’s Stamp Duty Land Tax Q&As. This free resource covers a wide range of SDLT queries and you can filter the results to find a specific query.
To be notified when new Q&As are published please sign up for alerts here.