Q&As

Which rate of SDLT applies to the acquisition of three properties (two residential, one mixed use) by a company where the consideration for each property does not exceed £500,000? The three acquisitions are linked.

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Produced in partnership with Mary Ashley of Old Square Tax Chambers
Published on LexisPSL on 20/12/2017

The following Tax Q&A produced in partnership with Mary Ashley of Old Square Tax Chambers provides comprehensive and up to date legal information covering:

  • Which rate of SDLT applies to the acquisition of three properties (two residential, one mixed use) by a company where the consideration for each property does not exceed £500,000? The three acquisitions are linked.
  • Linked transactions
  • 15% rate
  • Non-residential rates
  • Multiple dwellings relief

Which rate of SDLT applies to the acquisition of three properties (two residential, one mixed use) by a company where the consideration for each property does not exceed £500,000? The three acquisitions are linked.

For demonstrative purposes we will assign each property a value of £400,000 (total consideration, therefore, being £1.2m).

Linked transactions

Not all transactions between the same purchaser and seller are linked. Transactions are linked if they are part of a single scheme, arrangement or series of transactions between the same seller and buyer (or persons connected with them). It will be a question of fact in each case but for the purposes of this answer we assume that the transactions are in fact linked.

Where transactions are linked for SDLT purposes, the consideration for the linked transactions is aggregated to determine the applicable rate of tax (as well as determining whether the transactions are subject to the rate for residential

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