The maximum SDLT payable for purchasing commercial property is 5%, whereas the percentages can be much higher when purchasing more expensive residential properties. But there is a legal loophole: the six or more rule. If you are purchasing six or more properties in one transaction (even if they are residential properties), the transaction is allowed to be treated as a non-residential (i.e. commercial) purchase for SDLT purposes, thereby saving you a considerable amount of money. With complicated or very expensive purchases, never accept your solicitor’s advice on SDLT; instead, pay an SDLT specialist who knows the ins and outs of this punitive tax.
I know that this will only help people who are purchasing very expensive properties (generally over the £1m mark), but even if it helps one person to save a tonne of money then I'll be happy.
Regards,
George Herodotou
Are you looking to purchase one or more properties? Perhaps you're a hard-working professional but don't have the time, nor inclination, to be trawling the Internet and local estate agents for your…
