Why these types don’t Pay SDLT

Posted 07th December 2023 by ctatax-admin

Cornerstone Tax is the UK’s leading property tax advisers, specialising in Stamp Duty Land Tax. We’ve reclaimed over £15 million in overpaid SDLT in the last 12 months. Contact us for stamp duty advice, or to see if you are eligible to claim a refund from HMRC on overpaid Stamp Duty.

Quite apart from the fact that our old friend flipper the dolphin doesn’t actually need a house in the UK, there is another aspect to this.

“Flippers” is another term for “Property Traders” – Companies that buy houses and, almost, immediately sell on properties usually at a profit. What is little appreciated is that certain kinds of flippers qualify for 100% SDLT relief!

Why would this be the case?

Well it’s not all about immediately sub selling (known as “back to back” sales) but, rather, there are 4 specific reliefs which apply to Flippers namely purchasing:

  • To restore a broken chain
  • From the personal representatives of a deceased person
  • A part exchange property from somebody who is buying a “new” home*
  • From somebody who’s relocating their employment**

* Also applies to developers ** Also applies to employers

Subject only to certain limits on refurbishment expenditure and area of land acquired all qualify for a 100% relief from SDLT

Climate Change and Flipper

In the current economic climate, it may well be that chances exist to acquire properties in any of the above circumstances and proper advice should be sought before the transaction to ensure that you don’t miss out on what is potentially one of the most valuable reliefs available in SDLT today.

Give us a (Dolphin) whistle and something might click

If you would like to know more or if you think you have a transaction that might qualify (or would have qualified), please contact us

Contact us today

Here at Cornerstone Tax, we are Stamp Duty Land Tax (SDLT) experts.
You can call us on 01858 894349 or email us at newbusiness@ctatax.uk.com