188体育

A 999 year headlease over five flats and four lock-up shops in a block is purchased for a premium of 拢1.25 million and annual rent of 拢6,000. Two of the flats are subject to 99 year underleases.

The transaction is a relevant transaction for the purposes of the relief as it involves the acquisition of more than one dwelling - i.e. the three untenanted flats. The lease premium is apportioned between the three untenanted flats (拢750,000), the two tenanted flats (拢100,000) and the four shops (拢400,000).

The rate of tax on the premium attributed to the untenanted flats is set by the amount of that premium divided by the number of dwellings. This is 拢250,000 the tax due in respect of these flats is therefore the tax on 拢250,000 multiplied by 3.

The higher rates for additional dwellings will not be applicable as the non-residential element of the transaction is not neglible. More information about the higher rates can be found at SDLTM09730.

The non-resident rates of SDLT may apply to the residential element of the transaction if any purchaser is not UK resident. More information about the non-resident rates can be found at SDLTM09860.

The rate of tax on the premium attributed to the tenanted flats and the shops (拢500,000) is set by the total premium (拢1.25 million). As the transaction involves both residential and non-residential property, the tax is calculated using the non-residential rated in accordance with Table B section 55 Finance Act 2003.

Tax due on the net present value of the rent payable under the lease is calculated in the usual way. Again, the non-resident rates of SDLT may apply if any purchaser is not UK resident.