Stamp Duty Mitigation
Stamp Duty Mitigation or Stamp Duty Tax Planning enables buyers to avoid the Stamp Duty normally payable on residential and commercial land or property purchases above £250,000. This is achieved by structuring the purchase in a manner that enables you to take advantage of specific provisions in the SDLT legislation.
Yes – It is a common misconception that Stamp Duty Land Tax (SDLT) applies to all land transactions involving the acquisition of property. On the contrary, the legislation that regulates and governs SDLT provides for many forms of relief from the tax, all of which are perfectly legal.
The strategies available through A Save & Prosper Company Limited have been designed by Eminent Tax Counsel to achieve a legally robust and durable solution that mitigates the cost of Stamp Duty. These strategies remain unchanged since the 2012 budget and continue to provide a reduction to 0% Stamp Duty for those purchasing land or property with a value above £250,000.
Being eligible to mitigate Stamp Duty depends entirely on your circumstances. There are a number of factors that will have a bearing on whether you are eligible, such as the property value, how many properties you are buying, where the property is located and the environmental credentials of the property, to name a few.
The legislation that regulates and governs stamp duty provides for many forms of relief from the tax, all of which are perfectly legal.
Whilst a number of schemes are no longer valid following the 2012 budget, the stamp duty tax planning available through A Save & Prosper Company Limited is still available. It has been designed and is supported by leading UK tax counsel widely regarded as the leading specialist in Stamp Duty Mitigation strategies.
In addition this stamp duty planning includes full comprehensive insurance as standard.
Key Features
- Stamp Duty & Land Tax of 4%, 5% or 7% will be reduced to 0%
- SDLT planning implemented for the last 7 years with 100% success.
- Fees are fully insured for four years by Lloyds of London.
- Can be implemented post-exchange of contracts.
- All documentation completed for you.
- You will exchange and complete your purchase in your own name.
- Your vendor will not be involved
- Your lender does not need to be advised of the planning.
- There are no disclosure requirements on your Tax return.
- The majority of planning fees are not due until completion.
- The SDLT structure is supported by eminent Tax Counsel.
- Following the Budget the planning remains unaffected.
- Planning is implemented by a specialist in house planning team and a highly experienced panel of solicitors.
What are the rates of SDLT?
Band Not more than £150,000 (in the case of a lease, annual rent is under £1,000) Rate 0%
More than £150,000 but not more than £250,000 Rate 1%
More than £250,000 but not more than £500,000 Rate 3%
More than £500,000 Rate 4% On freehold transfers and lease premiums in respect of commercial property.
Example.
Property sale price £500,000 SDLT saving £15000 Saving after fees £7170.00
Property sale price £1,200,000 SDLT saving £60000 Saving after fees £28680.00
We will help you to save money with our many legal tax mitigation methods!.
So what do you need to do?
It is important to safeguard your home and the first step is to look at the way you currently own your home.
Joint tenancy (This is mainly for the banks protection)
The majority of people own their homes “jointly” which means that on first death, the survivor would then own 100% of the full property value and this is when your home becomes vulnerable to attack from Care Costs. (To access free care any cash assets must be less than £14,000 2013)
Tenants in Common (A will alongside will provide the same protection as a property held under a Joint tenancy)
By simply changing the way you own your home to what is known as “Tenants in Common”, combined with the appropriate Trust planning, will effectively ensure that your property is fully protected should either of you enter care.
SO WHAT ABOUT MY OTHER ASSETS- MY BANK ACCOUNTS AND SAVINGS?
Once again, by changing the way your assets are invested and held, can ensure that your cash or liquid assets are also fully protected from Care Costs. Our team are able to advise on all aspects of Care planning and provide you with the correct strategy to ensure that all your assets are fully protected.
Why you should consider setting up a family trust
Protecting Your Assets
There was a time when setting up a Family Trust was for the rich famous and elite. Today, Family Trusts are a vital financial planning tool for the ordinary man or woman with even relatively modest assets to protect.
A Family Trust:
- Is simple straight forward and low in cost to set up acts like a safe deposit box for your assets is designed to protect your estate against tax and costly probate charges.
- Can help to protect against care home fees.
- Enables your instructions to be carried out to the letter.
- Avoids the delay and stress caused by probate.
- Enables you to control your assets and estate.
- Provides access to your hard earned wealth at all times.
By combining a Family Trust with specific investment advice, the resulting government provided tax relief may ensure that your entire estate passes free of IHT, probate fees and charges such as care home fees to your loved ones.
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Useful Links
- Sell home to pay for careOpens in a new tab
- Article Sell home to pay for careOpens in a new tab