Tax Compliance

Stamp Duties: A critical tax implication in many personal and business transactions

Stamp Duties are very often overlooked when acquiring some assets.

Stamp Duty Land Tax can apply when acquiring either residential or commercial property and can be a significant and often complex tax implication, for instance when acquiring a property of mixed use.

In addition, when purchasing shares or making a change to the structure of a company business, Stamp Duty and Stamp Duty Reserve Tax is likely to apply.

Failing to plan for Stamp Duties, or miscalculating your liability, can lead to substantial, unnecessary costs or even penalties from HMRC.

At aventae, we offer clear and practical advice and compliance for Stamp Duties.

Our aim is to ensure your personal and business transactions are structured tax efficiently and remain fully compliant with ever-evolving tax legislation.

Why specialist tax planning matters for Stamp Duties

For property transactions, Stamp Duty Land Tax is not a one-size-fits-all tax. The amount payable depends on a complex interplay of factors, and specialist advice is crucial to navigate the tiered rates and various surcharges.

For share transactions, even with no consideration passing hands, there can be a tax liability to Stamp Duty which can be an unexpected cost.

Key areas that require expert planning for Stamp Duties include:

Residential vs. Non-residential property: The tax rules and rates differ significantly between residential and commercial property purchases.
Higher rates for additional dwellings: If you’re buying a second home or an investment property, a higher rate of SDLT will likely apply.
Buying through a company or a trust ownership; this will likely create a higher rate of SDLT but there can be many tax planning opportunities to consider.
First-time buyer relief: Eligible first-time buyers may be entitled to relief, resulting in significant savings.
Non-UK resident surcharge: A non-resident surcharge is applied to residential property purchases in England and Northern Ireland by non-UK residents.
Multiple dwellings relief (MDR): Careful structuring can lead to savings when purchasing multiple residential properties in a single or linked transaction.
Linked transactions: Transactions between the same buyer and seller that are linked can affect the overall SDLT calculation.
Changes to a company business structure: Any changes to restructure shares of a company will need to include the liability to Stamp Duty to ensure this tax isn’t an unexpected cost and any tax planning opportunities are considered.

Without meticulous tax advice, you risk overpaying or being exposed to retrospective liabilities.

How we support your Stamp Duty tax compliance

We provide comprehensive support throughout your property journey. Whether you are an individual, a property investor, property developer, business or shareholder, there is always the potential for stamp duties to be involved in your transactions.

Our Stamp Duty Planning services include:

SDLT review and strategy:

We review your transaction, whether acquisition, disposal, or a restructure, to ensure the most tax-efficient structure is used.

Minimising SDLT liability:

Advising on reliefs (like First-Time Buyer Relief and Multiple Dwellings Relief) and exemptions to legally minimise the tax payable on your purchase.

Ownership structure advice:

Guidance on whether to hold property personally, jointly, via a partnership, or through a company or other entity such as a trust, and how this impacts SDLT and other taxes like Corporation Tax or Capital Gains Tax.

Non-resident consultation:

Specialist advice for non-UK residents on the SDLT surcharge and compliance requirements.

HMRC reporting and compliance:

Taking care of the correct and timely reporting of any Stamp Duty with HMRC and providing you with full peace of mind.

The wonderful thing about working with aventae to optimise your Stamp Duty plan is that Amanda is always mindful of the full range of taxes that interlink to your transaction.

Ready to get started with tax planning for Stamp Duties?

Amanda is enthusiastic about applying her great experience of dealing with all stamp duties to various projects and tax planning cases.

Our straightforward process to support you looks like this:

Initial review

We start by understanding your situation and whether there are any Stamp Duty implications. This may be Stamp Duty Land Tax for property acquisition or it may be other Stamp Duties for other transactions you are undertaking.

Assessment & strategy

We will assess the full tax implications of your goals and objectives and provide tailored advice to ensure compliance and tax efficiency.

Implementation

We can manage the tax reporting to HMRC and work with your legal advisors to ensure everything is reassuringly as it should be and compliant with HMRC.

Ongoing support

Following your transaction, whether this is a purchase of property or a transaction in shares, we are able to continue to look after you with any further tax planning and reporting. This may be to consider other tax implications such as income tax and the reporting of income, or to monitor changes in the tax legislation changes that may impact your scenario.

Get in touch

For an initial discussion to find out whether your bookkeeping could be doing more for your business please get in touch.

Let’s get started on your bookkeeping today.

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