Purchasers could save thousands of pounds in Stamp Duty Land Tax (SDLT)

At The Mortgage Specialist Ltd, we are working with a firm of solicitors who specialise in tax planning.  More specifically, one of their areas of expertise is reducing the level of stamp duty for people buying residential or commercial property at over £500,000.  Typically, a buyer would pay 4% in stamp duty.  However, the solicitors are able to reduce this liability to nil.

It is available to individuals, couples, partnerships and companies. The solicitors would charge a fee of 2% + VAT.  Within this 2% fee, there is an indemnity insurance which protects the buyer in the unlikely event that the structure does not achieve the intended saving, therefore the 2% fee paid to the solicitors would be refunded.

The structure is underwritten and insured by Lloyd’s of London. The solicitors would be able to give buyers advice on Stamp Duty Land Tax Mitigation.  Due to the specialised planning using statutory relief it is not deemed a tax avoidance strategy by Her Majesty’s Revenue & Customs.   The structure is based upon a statutory relief unlike other ‘loophole’ SDLT schemes.

As an example:

·         Mr & Mrs Smith buy a property @ £650,000. 

·         Normal Stamp Duty Liability @ 4% of £650,000 = £26,000

·         Use specialist solicitor in stamp duty land tax mitigation reduces this liability to zero.

·         Solicitors fee of 2% of purchase price + VAT (17.5%) = £15,275

·         £26,000 - £15,275 = £10,725 saving for the client.

If you or someone you know is buying a property above £500,000 and would be interested in reducing their stamp duty liability, please contact us for further information.

The Mortgage Specialist Ltd is not authorized to provide investment, legal or tax advice. All stamp duty mitigation enquiries are referred to a network of selected professionals.

For further assistance, call us on 0800 612 7688.