Stamp Duty Land Tax – Husband & Wife Planning

What does it do?
Achieves an 84% Reduction in the value on which Stamp Duty Land Tax on Residential Property is charged.

Who is it for?
Husbands and wives (or from 1st December 2005 members of registered civil partnerships) wishing to purchase freehold or long leasehold residential property over £825,000. This scheme only applies to the persons mentioned above and only for residential property in the UK.

Key Points

Needs to be implemented prior to exchange of contract
Can be applied to either residential freeholds or long leaseholds
No deterioration in lender’s position
For commercial protection reasons client must use a solicitor chosen from a panel designated by us

Fee Structure
Our fees are a % of the property value on which SDLT is saved:

£825,000 to £5 Million	1.5 %
£5 to £10 Million	1% on excess plus max above
Thereafter	By agreement

Payment of these fees is as follows:

On undertaking the planning - £2,000.
9 months after submission of SDLT1 (closure of enquiry window) - balance up to scale fee.
Values quoted are inclusive of VAT (if applicable).

Risks
This tax planning is legitimate in both principle and practice. Full disclosure will be made in each case, but it may nonetheless be challenged by the HM Revenue and Customs. In the event a challenge is successful, the benefit of Counsel’s Opinions means that penalties will not be levied. The only likely cost over and above the SDLT is an amount of interest at official rates calculated from the due date to the date actually paid.

Implemented
Yes

Counsel’s Opinion
Patrick Way, Gray’s Inn Chambers, Gray’s Inn (December, June and July 2005)
Disclosability
This planning is not disclosable under the new Tax Avoidance Disclosure Regulations 2005 dealing with SDLT.