Who made up Stamp Duty Land Tax (SDLT)???!

millepede

Hello, I have just been researching SDLT and impacts to my new tenant and is it just me, or does this tax seem a little odd? They pay tax on the rent they pay?

It seems my tenant paying 920 a month for a year would not pay this tax in the first year at least, but assume that if she decided to live in the flat for many years, might?

Doozergirl

?

Paying £920 a month, she'd have to pay SDLT only if the lease was for a total value of more than £125k. Therefore, an initial lease of more than 11 years and 4 months. Which makes is more akin to long leasehold property, which it's normal to pay SDLT on.

The clue is to sign a tenancy agreement for less than 11 years 4 montsh! ASTs are 6 or 12 months.

theartfullodger

In answer to your question...

Who made up Stamp Duty Land Tax (SDLT)???!

WrongIpedia says...

Stamp duty was first introduced in England in 1694, during the reign of William and Mary under "An act for granting to Their Majesties several duties on Vellum, Parchment and Paper for 4 years, towards carrying on the war against France".

(Good to hear we must still be fighting the French...)

see...
http://en.wikipedia.org/wiki/Stamp_duty_in_the_United_Kingdom#History_of_UK_stamp_duties

Cheers!

millepede

Doozergirl wrote: »

?

Paying £920 a month, she'd have to pay SDLT only if the lease was for a total value of more than £125k. Therefore, an initial lease of more than 11 years and 4 months. Which makes is more akin to long leasehold property, which it's normal to pay SDLT on.

The clue is to sign a tenancy agreement for less than 11 years 4 montsh! ASTs are 6 or 12 months.

It just seems so odd for my tenant to pay this tax, this is the one example I found:

John rents a house for his family for twelve months. The rent is £1000 per month; therefore the rental value over the year’s duration of the lease will be £12,000. The net present value of the rental over this rental period is £11,594. Because the NPV rental value is less than £125,000, no SDLT is payable. Calculation:
NPV (year 1) = 12,000 / 1.035 = £11,594.20

millepede

theartfullodger wrote: »

In answer to your question...


WrongIpedia says...

(Good to hear we must still be fighting the French...)

see...
http://en.wikipedia.org/wiki/Stamp_duty_in_the_United_Kingdom#History_of_UK_stamp_duties

Cheers!

tax for fighting the french! hilarious

theartfullodger

millepede wrote: »

It just seems so odd for my tenant to pay this tax, ............

Mille.. (and anyone else..)

If you expect any tax to be logical or fair I fear you are setting yourself up for a disappointment...

Doozergirl

I don't get your point. There is no tax payable, it's not even close to it, so what's the problem?

PasturesNew

Yeah, I'm here to ask: !!!!!! drugs are you on?

There is no tax to pay ... maybe you're not actually cut out to be a LL after all.