SDLT implications for companies UK property accountants

Which rates of SDLT apply?

As property accountants, we’re constantly updated with the latest tax changes and regulations. That’s why we wanted to provide you with a quick rundown of the standard rate of SDLT as well as the applicable rates for different types of property.

Remember that there are many exceptions to the standard rate of SDLT, so always consult with your accountant to ensure that you’re paying the right amount of tax or you can also have an idea about how to get an SDLT refund. In the meantime, we’ve put together a handy table to help you understand the situation for properties bought before 6 April 2007. Finally, if you want to buy or sell property in the UK, check out our blog for more insights.

Reducing the SDLT liability

The tax liability associated with the Small Business Development and Employment Act 2015 is a heavy burden for companies of all sizes. Fortunately, companies can take several practical steps to reduce liability. One of the most important is to review their business activity and reorganise if necessary. This will help trim the tax burden and make the SDLT process easier. Additionally, companies can apply for relief under Section 109(1)(a) of the Tax Acts. This relief is available to companies where total annual worldwide income is below the tax threshold, or UK property taxable income is below the tax threshold for a particular tax year, provided certain conditions are met.

Rental income

Property accountants in the UK are keeping a close eye on the tax changes coming into effect from April 2018. These changes will significantly impact companies that rent out properties in the UK. Firstly, the tax bill will vary depending on your rental income and the type of tenancy you have - private residential or commercial/industrial leasehold.

If your company rents properties in the UK, it’s essential to keep your company compliant with tax law. This includes holiday rentals and short-term letting (less than 12 months).SDLT is payable on rental income, whether the property is rented out full-time or part-time. So, if you’re a property accountant in the UK, keep an eye on these changes and ensure that your company complies with tax law.

Rental expenses

Knowing which expenses you can claim as tax deductions when renting out property can be tricky. That’s where an accountant comes in. They will typically need assessor reports confirming that all the legal requirements are met before issuing documentation such as an SDR-I Form 1094S/1095S Return for Self Assessment etc...

As for landlord tax, it’s typically deducted from the rent and is often taken from the property’s income. The landlord pays this tax on behalf of their tenants (via a mortgage), and it’s typically deducted from the rent. Rental expenses can be claimed as deductions on your tax return, subject to specific rules. These rules vary depending on the expense type, but things like mortgage interest, rates, and property management fees can all be deducted. So, if you’re renting out the property, make sure you have an accountant on hand to help you with all the tax implications.

Stamp duty and land tax

It’s never too late to plan for tax season. Ensure you get accurate advice from a tax accountant, so you know exactly what you’re paying for. It’s also important to keep up to date with current trends in the rental market, as this can help you save money on your purchase or sale.

If you’re a landlord in the UK looking to buy or sell property, be aware of the stamp duty and land tax you’ll need to pay. SDLT is a tax landlords in the UK need to be mindful of when buying or selling property, which can add up quickly. So, have all your ducks in a row before making big decisions.