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Stamp Duty Charges for SPVs and Limited Companies

Stamp Duty Charges

SDLT is charged at 15% on residential properties costing more than £500,000 bought by certain corporate bodies (or ‘non-natural persons’). These include:

companies
partnerships including companies
collective investment schemes

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When the 15% Rate does not Apply

The 15% rate doesn’t apply to property bought by trustees of a settlement or bought by a company to be used for:

a property rental business
property developers and trader
property occupied by employees

In these identified examples the 15 per cent higher rate SDLT charge does not apply and SDLT is payable at the standard rates. Please refer to SDLTM09550 concerning higher rate charge for acquisitions of residential property by certain non-natural persons

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Examples

A company acting in its capacity as a trustee of a settlement purchases a chargeable interest in a dwelling. The interest costs £2.5 million. The 15 per cent higher rate SDLT charge does not apply and SDLT is payable at the standard rates.

On 1 September 2014 a company acting in its capacity as a bare trustee for an individual purchases a chargeable interest in a dwelling. The interest costs £1.5 million. The 15 per cent higher rate SDLT charge does not apply as the bare trustee is ignored and the return must identify the purchaser as the individual. SDLT is payable at the standard rates.

An individual acting in his/her capacity as a bare trustee for a company purchases a chargeable interest in a dwelling. The interest costs £2.5 million. The higher rate charge applies as the bare trustee is ignored and the return must identify the purchaser as the company. The 15 per cent higher rate SDLT charge applies.