SDLT - An Update on the Conveyancer's Liability

Introduction

With property price inflation, SDLT is no longer only a concern for the wealthier clients - most transactions nowadays involve the payment of this tax which grows ever more complex.

Starting out as a single rate we now have residential, commercial, additional properties and non-resident surcharges. All of this means the conveyancer has to be aware of all of the details and administration of the tax - it has even been suggested conveyancers act as unpaid tax collectors for H.M. Government.

This adds to potential liability both to the client and potentially HMRC if you get it wrong.

What You Will Learn

This webinar will cover the following:

• Rates, reliefs and budgetary changes
• Beware of companies approaching your clients suggesting an overpayment
• CQS accredited firms must comply with the Core Practice Management Standards - what are they?
• Purchases by non-resident buyers - individuals, joint owners, companies - what is the definition of ‘resident’?
• SDLT arising on gifts and transfers between joint owners, spouses and civil partners
• Higher rate on additional dwellings - the 5% surcharge:
• Which transactions do the higher rates apply to and which will not?
• Problems over buyer owning other properties, replacement main residence, joint ownership, adult buying for offspring, foreign property
• A detailed look at HMRC guidance, definitions of a ‘dwelling’ and a ‘major interest’ for these purposes and the four essential conditions which have to apply for a property to be subject to higher rates
• Individuals - purchase of single dwelling, multiple dwellings, joint purchasers, married couples and individuals ‘treated as’ owning a property, trusts, trustees and beneficiaries
• Companies and other non-individuals
• Interaction with multiple dwellings relief, filing a return and when a refund may be claimed
• ‘Granny Annexes’ - special rules
• First Time Buyer Relief:
• Eligibility, price limits, conditions to be met
• Joint buyers and relationships that have broken down
• Definitions of a first-time buyer and dwellings, linked transactions. Extension of relief to choices under shared equity purchases
• Avoidance: SDLT Avoidance schemes, HMRC attitudes, penalties and professional misconduct
• Other Reliefs: Charities, Registered Social Landlords, Local Authorities and Developers, Freeports
• UK residential property developer tax
• Importance of valuation used for calculating SDLT

This webinar was recorded on 12th November 2024

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