Advice on Company Property Purchases

While Stamp Duty Land Tax (SDLT) rates can be substantial for companies acquiring residential properties, there are SDLT relief options available.

Eligibility for SDLT Relief

SDLT relief for companies buying residential property is subject to specific eligibility criteria:

Types of SDLT Relief

SDLT relief options for companies buying residential property include:

• Flat Rate: Companies pay a flat rate of 15% on the entire purchase price of the property. This applies when the company is not eligible for any specific relief or exemption.

• Multiple Dwellings Relief: This relief applies when a company purchases two or more residential properties in a single transaction. SDLT is calculated using a "slice" method, resulting in potentially lower overall SDLT liability compared to individual property purchases.

Additional Considerations

When considering SDLT relief for companies buying residential property, it's important to keep the following in mind:

• Mixed-Use Properties: If the property being purchased is a mixed-use property, meaning it has both residential and non-residential components, SDLT relief for companies may only apply to the residential portion of the transaction.

• Connected Parties: SDLT relief may be affected if there are connections between the company acquiring the property and other individuals or entities. It is crucial to consider the rules surrounding connected parties and their potential impact on the availability of relief.

• Future Use of the Property: SDLT relief is generally available at the time of purchase. However, any changes in the use of the property, such as converting it from residential to commercial use, may affect the availability of SDLT relief. Seeking professional advice is recommended to navigate such scenarios.