On the 9 July, David Rickwood, Personal Tax Director for Shaw Gibbs posted the top 10 tax considerations residential landlords need to take into account.

Following is my answer to David’s sixth point – Do you know that Stamp Duty Land Tax (SDLT) is now due within 14 days of transfer completion?

Higher rates of Stamp Duty Land Tax (SDLT) will apply to most purchases of additional residential properties in England, Wales and Northern Ireland where, at the end of the day of the transaction, individual purchasers own two or more residential properties and are not replacing their main residence. 

It is also worth noting that where a transaction is entered into by joint purchasers the higher rates will apply if the transaction would be liable to the higher rates of SDLT for any of the purchasers considered individually. 

If the purchaser is replacing their main residence and the previous main home is sold or given away within three years of buying a new home then the higher rate SDLT must be paid on the purchase of the replacement main residence, however you can then apply for a refund of the higher rate part of the SDLT bill once the original main residence has been sold. 

From 1 March 2019 the SDLT return and payment deadline has been shortened from within 30 days to within 14 days from the date of transaction. SDLT returns delivered after the deadline will incur penalties, and interest will arise where payment is made late. 

In most cases, the date of transaction for SDLT purposes is the date you complete a lease or a transfer of land. One of the most frequent exceptions to this rule is when a buyer ‘substantially performs’ the contract in advance of completion, for example by taking early occupation in order to carry out works.