If you are purchasing more than one property in one go, or several properties connected to each other e.g. three flats in a portfolio, a single titley with more than one dwelling, house, shop or property, or mixed use property, please notify us immediately as you may benefit from multiple dwellings relief or you may be able to apply non residential rates to your transaction
We can look at applying reliefs and or lower rate to reduce your SDLT liability in accordance with HMRC guidelines.
Multiple Dwelling relief is where you are (for example) purchasing three properties but you elect to purchase each property individually to maximise the reliefs and nil rate bands for each property. You do not generally pay high rate tax on a multiple dwelling unless the smaller dwelling is worth more than 1/3 of the value of the whole title.
There are also strict time limits to claim back overpaid SDLT – please let us know if you want the firm to do this for you. We recommend you get an SDLT specialist to advise in complex cases.
Please note – company purchases of residential property over £500,000 – there are high rates applicable, but also complex reliefs to – please let us know if this applied to you.
We look forward to hearing from you.
Capital Gains Tax – please note the firm does provide CGT advice and your refer your CGT questions to an accountant! This is a reminder and some guidance to make sure you neet the new rules –
HM Revenue and Customs (HMRC) have issued a reminder that the deadlines for paying Capital Gains Tax (CGT), where there is a liability to do so, after selling a residential property in the UK, changed on 6 April 2020.
From 6 April, any UK resident individual must now tell HMRC, in cases where CGT is due, and pay within 30 days from completion.
This includes information on:
- When you need to report CGT within 30 days,
- The online service set up on 6 April allowing UK and Non-UK residents to report and pay any relevant CGT liability,
- The amended rules for reporting and paying CGT for non-UK residents, disposing of UK property or land (including non-residential UK property),
- Advice for agents,
- Trusts – trustees and their advisers should also be aware of the tightened reporting and payment windows that they will face.
HMRC have issued the following reminders about the changes:
- From 6 April 2020 the deadlines for filing and paying CGT on the disposal of an interest in UK residential property by UK residents changed.
From then, anyone who disposes of a UK residential property, that isn’t their main home and makes a Capital Gain where there is tax to pay, must tell HMRC and pay the CGT due within 30 days of completion.
- This doesn’t apply if the residential property is the person’s main home and it’s been used solely as their private residence during the time it was owned. This is because the disposal will be covered by Private Residence Relief (PRR).
- The rules also changed for non-UK residents notifying HMRC of a disposal of both UK residential and non-residential property regardless of whether there is a gain or not.
- Non-UK residents are still required to notify HMRC of the disposal via the online service but will not be able to defer any payment due to the Self-Assessment Tax Return.
- If someone doesn’t report gains on property within the 30-day time limit they may be liable to a late filing penalty, and if the tax is not paid within the same time limit, they may have a late payment penalty and be subject to late payment interest.
This is a significant change for people who would previously only have had to enter the details on their Self-Assessment return and pay the tax due in line with the SA deadlines
Clifford Smith & Buchanan Solicitors – part of Guardian Wills and Probate Services Limited, Legal Department Tel 01282 693182, https://www.cs-b.co.uk
BEFORE SENDING ANY FUNDS TO OUR FIRM YOU MUST RING TO CHECK OUR BANK DETAILS AND OBTAIN OUR AUTHORITY TO RECEIVE THE FUNDS FROM YOU. FOR EXISTING CLIENTS – YOU WILL RECEIVE THE NEW CLIENTS ACCOUNT DETAILS BY SECURE PORTAL – BUT YOU MUST RING US TO VERIFY BANK DETAILS BEFORE SENDING ANY FUNDS.
COVID-19 – We strongly recommend clients arrange all meetings via phone or video call. Documents which need signing will be emailed or downloaded from our portal. Since we use electronic systems for estate agents and legal work already our day to day work is not heavily affected by working remotely. However, we sometimes need to witness a deed, or have two people witness a will (so that three people are in the room at the same time), or swear an oath before a solicitor in person. You will need to make your own arrangements to witness documents and make sure they are executed properly – please ask for advice if in doubt.
NB – due to the corona virus risks you will need to witness documents at home and post them to the office. Witnesses should always be independant i.e. not a spouse, and not a legal or beneficial owner of the property which is the subject of the deed or a beneficiary in a a will. For an ordinary deed the witness must be in the room with you when you sign. The witness must also sign in the witness box and print their name address and occupation. For a will you must have two independant witnesses so that all three people are together in the room at the same time when you sign the document. Both witnesses for a will should sign in the witness box and print their name address and occupation.