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
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.
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