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Stamp Duty on residential rental property
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longtimelurkersam
Posts: 330 Forumite
Looking for some of the property guru's help please. I searched www and on here but couldn't find anything recent.
I am just about to sign a new tenancy agreement for a London property and in the attached email as well as the agreement it says:
"you are responsible for the payment of any Stamp Duty Land Tax which may be applicable on the Tenancy and any subsequent extensions thereof. Further information in this regard can be obtained from the Inland Revenue enquiry line on 0845 6030135 or from their website at www.inlandrevenue.gov.uk/so"
I look at SD section on HRMC and then called HRMC explained it was a high value residential rental (£485 pw). After asking questions about whether I am taking over the lease (it is a standard AST from what I can see) the guy said as it was residential there was no stamp duty to pay. Obviously I forgot to take his name!
So the question is if there is no SD to pay why would a LA agent put it in the email as well as the tenancy agreement? Are they just be stupid cos unregulated and not had any training/covering their backside in case the rules change. It is Cluttons who are not exactly a small outfit.
Obviously I am paying a huge monthly rent and don't want stinging with extra massive charges from HRMC.
I am just about to sign a new tenancy agreement for a London property and in the attached email as well as the agreement it says:
"you are responsible for the payment of any Stamp Duty Land Tax which may be applicable on the Tenancy and any subsequent extensions thereof. Further information in this regard can be obtained from the Inland Revenue enquiry line on 0845 6030135 or from their website at www.inlandrevenue.gov.uk/so"
I look at SD section on HRMC and then called HRMC explained it was a high value residential rental (£485 pw). After asking questions about whether I am taking over the lease (it is a standard AST from what I can see) the guy said as it was residential there was no stamp duty to pay. Obviously I forgot to take his name!
So the question is if there is no SD to pay why would a LA agent put it in the email as well as the tenancy agreement? Are they just be stupid cos unregulated and not had any training/covering their backside in case the rules change. It is Cluttons who are not exactly a small outfit.
Obviously I am paying a huge monthly rent and don't want stinging with extra massive charges from HRMC.
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Comments
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Stamp duty is payable on the 'purchase' of a property. Not when letting.0
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jbainbridge wrote: »Stamp duty is payable on the 'purchase' of a property. Not when letting.
Exactly how I understood it, but I found an article talking about it on lettings and having searched even more after posting I found a link on MSE and a good link inside it which shows it is payable but the rent has to be £125k pa
http://www.letlink.co.uk/letting-factsheets/factsheets/factsheet-32-stamp-duty-land-tax-sdlt.html
So I am okay and apologies for not searching very well..... :A0 -
Stamp Duty used to be payable (many many) years ago on tenancies.
The landlord is using a very old tenancy agreement.
How long is you initial tenancy? Is it more or less than 3 years? 7 years?0 -
It is a 12 month agreement with 6 month break clause. I read this board a LOT and as I couldn't find anything recent I assumed it was their stupidity, but wanted to check for my own sanity.0
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No SDLT on a tenancy of that duration, breathe easy!0
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