How does the 3% additional SDLT rate apply to multiple dwellings?

[Patrick]

James, you are not married so the SDLT exemption for separating couples is not available to you. The SDLT position depends on the scope of the partition exemption in para 6 Sch 4 FA 2003 which is a matter of some uncertainty at the moment where joint interests in more than one property are concerned.I would hope that the SDLT was restricted to the value of the mortgage liabilities assumed plus the cash equality payment but this is a matter on which you should take detailed advice from your solicitor dealing with the conveyancing and SDLT return.

[Justin Bryant]

sdltm04030 states in the 1st sentence:

“Where two or more people are jointly entitled to land (whether a single chargeable interest or more than one chargeable interest) and there is a partition or division of the land this is not treated as an exchange.”

So this should be OK. See:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04030

[Author]

Posts