Posted by James Pearson on 22 Oct 2012

Stamp Duty Land Tax Grandfathering Changes

Her Majesty’s Revenue & Customs (HMRC) have over a number of years,  been looking at the various Stamp Duty Land Tax (SDLT) avoidance schemes and measures have been introduced to prevent such schemes from operating “under the radar”.

Certain schemes avoided being notified to HMRC under the disclosure of tax avoidance schemes regime because the schemes were made available for implementation prior to 1st April 2010. Such schemes are known as “grandfathered” and require no disclosure to HMRC.

Due to proposed changes to the grandfathering rules some grandfathered schemes implemented on or after 1st November 2012 will have to be disclosed to HMRC. If one is considering the purchase of a property using an arrangement designed to reduce the exposure to SDLT, it would be better, if possible, to complete the transaction before 1st November 2012.  If completion before then is not feasible, advice should be taken on whether or not the proposed scheme to reduce the exposure to SDLT is still going to be relevant on or after 1st November 2012.

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If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or customerservice@taxinnovations.com.

 

See also…

Property Partnership Incorporation and SDLT

Stamp Duty Land Tax (SDLT) Changes

Finance Act 2018 Enacted

New Tax Relief on Mortgage Restriction

Tax Issues on Divorce

How to Own Property

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