Renters pay stamp duty land tax???????

Worried_tenant

Hello all,

I have recently moved in to a property which I rent from Kinleigh Folkard and Hayward for £1200/month on a 12 month contract. My best estimate is that the property is worth £350,000 based on what similar properties on my development have sold for in the last 1-2 months.

I received a letter from KFH today saying that I was liable for stamp duty land tax on my property.
Firstly, is this fair and normal? Secondly, how much will it be at that estimate?

I really love my flat but if this proves to be an exorbant amount I may terminate my tenancy on the grounds that they broke the tenancy agreement in not having the flat professionally cleaned before I moved in which I stipulated in my contract with them.

sooz

Hi Worried tenant,

Don't worry, you don't have to pay anything!

It's very cheeky of KFH not to have explained this to you, & I suggest you take it up with them.

SDLT on tenancy agreements is not the same as Stamp Duty payable on purchases. It is not a percentage of the sale value of the house. It used to be £5 for someone to actually place a stamp (of the large heavy sort, not 1st class type) on the tenancy document, and this was the tenant's responsibility. However, the inland revenue have raised the level for this, and you'd need to be paying much more rent for this to apply to you ( I think it's now more than £125,000 per agreement)

this link explains it better than I can

moneysavinmonkey

Stamp duty land tax applies only when you buy property or land and is paid by the conveyancing solicitor directly to the land registry.

There is absolutely no way that you as a renter would be liable for this. I would call Kinleigh folkard and hayward ask them why they have sent you this letter.

sooz

see link above.

tenants do have to pay SDLT on their tenancy agreements, but only if rent is over £125,000 for the term

PasturesNew

Oh good, finally a rich b4st4rd tax

moneysavinmonkey

sooz wrote: »

see link above.

tenants do have to pay SDLT on their tenancy agreements, but only if rent is over £125,000 for the term

Did not know that.. thanks for the link sooz. In reality this isn't really going to apply to tenancy agreements as such more likely commercial leases.....certainly the OP doesn't need to worry.