HMRC have updated their guidance on higher rates of Stamp Duty Land Tax (SDLT) to include more detail on the rules for companies and partnerships.
Higher rates of Stamp Duty Land Tax explains who has to pay the higher rates of SDLT when buying an additional residential property for £40,000 or more. The guidance has been updated to include more detail on the rules for companies and partnerships. Companies must pay the higher rates for any residential property they buy if:
- the property is £40,000 or more;
- the interest they buy is not subject to a lease which has more than 21 years left.
If the property costs more than £500,000, the 15% higher threshold SDLT rate for corporate bodies may apply instead.
Partnerships have to pay the higher rates if the partnership already owns a residential property and another residential property is purchased for the partnership. Where a partner is buying on their own behalf, the rules do not apply to other non-spouse partners.
A partner will not have to pay the higher rates when buying a property for themselves and their only additional properties are used for their partnership’s trade.