Maximise your commission: The Power of SDLT for Julian Marks Estate Agents

More than one property

When a buyer purchases more than one property in a single transaction or in a linked transaction they could be eligible for SDLT relief.

What to look out for:

• annexe
• home office in the garden
• a separate living space e.g. bungalow or cottage on the grounds
• barn
• other separate buildings on the grounds
• 6 or more properties being purchased at the same time

Multiple property SDLT relief is being withdrawn on the 6 June 2024. You can claim on transactions up to 12 months before. Any completions after the 6 June 2024 do not qualify.

Neglected or disused

When you are selling a property that is considered to be neglected or disused a SDLT relief could be available for your buyer helping to make the property more attractive to buy knowing that it requires renovation or improvements.

What to look out for:

• asbestos
• Japanese knotweed
• leakage
• flooding
• dampness
• rotting
• mould growth
• structural damage
• major roof damage

Residential and business

Some properties have both living and working spaces for example a building that is a flat and a shop or office space. When you are selling properties like this, SDLT relief could be available.

What to look out for:

• flat or apartment with a ground floor shop
• house with an attached office
• apartment building with a ground floor café or restaurant
• flat above a workshop
• retail space with a flat or apartment

Agriculture

There is a SDLT relief available for agriculture however it is complex as many factors are considered to judge whether a relief is suitable making it difficult to share a scenario.

What to look out for:

• land type
• use of land
• Farmhouse
• farm land

Partnership

This may not be a regular scenario for you but it’s worth knowing for those odd occasions.

SDLT relief can be available for those selling or transferring their property to a limited company. The rules are intricate and complicated but in some situations SDLT does not need to be paid which makes it worth exploring.

What to look out for:

• the company must be registered with HMRC.
• the company must have a separate bank account.
• the limited company must be buying a property from one of their shareholders.

First time buyers'

I’m sure you have heard and know there is a SDLT relief for first time buyers. So we won’t go into the details instead we will jump right to…

What to look out for:

• the buyer and any co-buyer must be first-time buyers.
• buyers intention must be to make the property their home.
• buyers are exempt from SDLT on the first £425,000 of the value
• any amount over £425,000 but under £625,000 the fee is limited to 5%
• if the property is purchased for over £625,000 they are not eligible for SDLT relief

Linked purchases

Linked purchases refer to situations where two or more property transactions involve the same buyer and seller.

The total consideration for all the linked purchases or transfers is considered when assessing the amount of stamp duty must be paid.

Demolition plan

• Example: Dilapidated bungalow in a bidding war, one buyer planning to demolish and rebuild.
• Property: A bungalow situated on a plot measuring approximately 1.24 acres and bordered by mature woodland.
• SDLT Solution: Mark Holt & Co advised the buyer wanting to demolish the property that SDLT originally quoted as £40,000 can be reduced to £20,000 resulting in a £20,000 tax saving. The buyer won the bidding war and purchased the property £10,000 more that the asking price.
• SDLT scenario: Neglected or disused.

Buyer with a budget

• Example: A £2.2 million property was beyond the buyers budget.
• Property: A main house, a guest cottage, various outbuildings including stables, barns, garage and workshop with 44. acres of land featuring woodland, paddock and meadow.
• SDLT Solution: SDLT was quoted as £229,000. Mark Holt & Co reviewed the property and identified SDLT savings of £134,000, reducing the cost to £95,000. This allowed the buyer to match the asking price.
• SDLT scenario: More than one property and agriculture.

Multiple property SDLT relief is being withdrawn on the 6 June 2024. You can claim on transactions up to 12 months before. Any completions after the 6 June 2024 do not qualify.

Residential and business

• Example: A buyer is interested in purchasing a property that’s suitable for both living and working in.
• Property: A flat above a workspace
• SDLT Solution: SDLT was quoted to be £34,000. Mark Holt & Co reviewed the property in detail, explored the different uses the property allows and how it is intended to be used by the buyer and was able to reduce SDLT to £14,000, saving £20,000.
• SDLT scenario: Residential and business.

Family Trust ownership

• Example: Buyer purchasing a property on behalf of their mother.
• Property: A £257,000 semi-detached house.
• SDLT Solution: Mark Holt & Co set up a trust structure for the buyer, reducing SDLT to zero and earnt the estate agent four great referrals.
• SDLT scenario: Family Trust Ownership.

A limited company buying a property

• Example: The owners of a limited company agreed to transfer a property one of the owners own to the business to expand their real estate business.
• Property: A large detached house with land.
• SDLT Solution: Mark Holt & Co reviewed the complicated and strict rules and were able to reduce the amount of SDLT by 75% for the business.
• SDLT scenario: Partnerships.

Multiple buyers

• Example: The buyer owns a property that he and his girlfriend lives in. Both individuals needed to be listed on the deeds to secure sufficient borrowing. Girlfriend also has a buy-to-let property.
• Property: A £300,000 house.
• SDLT Solution: The buyers were quoted £14,000. Through strategic planning Mark Holt & Co lowered it to £5,000, resulting in a saving of £9,000.
• SDLT scenario: Multiple buyers

Found the dream home but can't afford it

• Example: Aspiring couple eyeing a £2 million property with an estimated SDLT of £140,000.
• Property: A meticulously presented and fully equipped detached 1930s house boasting exquisite landscaped gardens and expansive southerly views. The property included the main house, a cottage, and just under 10 acres of land.
• SDLT Solution: The buyer was quoted £140,000 for SDLT. Mark Holt & Co reduced SDLT to £57,000, saving the couple £83,000 and making their dream home affordable. The seller was happy selling the property for the asking price and the buyer was happy they could afford their dream home.
• SDLT scenario: More than one property.