Stamp Duty Land Tax (SDLT) is a self-assessed tax on taxpayers, not a duty on documents. This means you need to ask important questions of your client before you can effectively complete the SDLT return. A key skill for commercial property lawyers is knowing what information you need to ensure the return is accurately completed.
Whether you are a solicitor or other practitioner dealing with commercial property, this course is designed to inform and refresh your knowledge to avoid problems with SDLT and returns. It is, for instance, important to appreciate that if you complete a return based only on the information set out in the transfer document, you could be liable to underwrite any claim for any unpaid element of tax due to HMRC. Furthermore, HMRC can make claims for up to 21 years.
Our well known and respected SDLT expert, David Hannah of Cornerstone Tax, will take you through the key issues and pitfalls to be aware of, focusing particularly on commercial lease issues including agreements for lease, 'substantial performance', surrenders and regrants, rent deposits, holding over and periodic leases.
Key learning outcomes
- Understand when you can treat commercial property as ‘residential’ to attract lower tax rate
- Appreciate how to treat fixtures and goodwill, and avoid future tax claims
- Understand the tax treatment of different types of contract, options, sub-sales and overage
What does this course cover?
This course covers the main issues of SDLT, and you will benefit from various worked examples and flowcharts. Topics include:
- The meaning of 'residential property', and when you can assess commercial property as ‘residential’ - and use lower rates of tax
- The new rules on linked transactions and multiple dwellings relief
- Linked transactions and connected parties in the context of company and commercial property transactions; the sting in the tail of the rate reductions
- How to prevent further tax claims; voluntary disclosures
- Consideration affecting fixtures and goodwill
- Substantial performance and development agreements
- Conditional contracts and options
- Sub-sales: the new rules; when to be concerned about tax fraud
- Overage: deferred and contingent or uncertain consideration
You will be encouraged to interact and solve examples of problem situations involving some of these issues.
Also consider attending SDLT Walkthrough and Workshop for Residential Property Lawyers which runs at the same venue in the morning.