The case of Henderson Acquisitions Ltd v HM Revenue & Customs (HMRC) centers around an appeal brought by
Trust UK Property Accountants to Optimise Returns and Minimise Hassles!
Reach Out to Us Today and Let's Shape
Your Success Together!
Book a free 15-minute discovery call to understand your tax needs. Book Now→
We aim to save you the Stamp Duty on Derelict Property.
What You Need to Know about Derelict Property?
Our experienced advisers will work with you to understand your goals, assess your tax liability, and develop a personalised plan that meets your needs. We'll guide you through every step of the process, ensuring that you have a clear understanding of your options and the potential outcomes.
Claiming SDLT
Homeowners and property purchasers can sometimes benefit from their property being classified or qualifying as Derelict property.
Even after the purchase if a derelict property determination is made. The commercial rate of SDLT will be charged, and not the residential property rate and home purchasers can receive a refund depending on their SDLT liability.
Companies purchasing residential property will be subject to higher rates of SDLT, including the first purchase of residential property.
Dwelling and Suitable for Use as a Dwelling
HMRC considers a Dwelling as; A building or part of a building counts as a dwelling if:
First Tier Tribunal (FTT)in P N Bewely vs HMRC & Fiander & Brower Vs. HMRC defined ‘suitable for use as a dwelling’ as having among others, these basic features:
Dwelling and Suitable for Use as a Dwelling
Internal changes, like removal of the bathroom or kitchen before selling or purchasing, do not count as structural changes and will not be seen as making the building unfit to be used as a dwelling.
There is a clear difference between derelict property and a home that can be lived in but needs to be updated, renovated, or fixed. These problems can be fixed without changing the property's structure in a major way.
When claiming a property as "derelict," the non-residential SDLT rate is used because the property isn't fit to be a home or residential property.
3% Additional SDLT surcharge and Who is Affected?
We'll provide you with a written advice report that outlines our recommendations and explains how they'll benefit you.
If necessary, we'll also conduct a verbal consultation to answer any questions or concerns you may have.
Why Choose us for your Derelicts Property filing?
We are specialist accountants and tax advisers for your property business! The service delivered by our qualified and experienced team is tailored as per your needs. Our accomplished tech-embedded service with exceptional property tax insight makes us stand out from the rest.
Our process
How We Work
Our property tax professionals do an assessment of the property. The tax department here at our company computes the potential savings in SDLT. You will receive tax advice in written form from us.
Here is our awesome team
At UKPA, it is done by a team of people evolved from different walks of life. Trained and experienced in property and real estate tax, accounting and compliance matters, most of them are qualified as Chartered Accountants, Chartered Tax Advisers or Chartered Financial Analyst.
Our Blogs
Read Our Stamp Duty and Land Tax Articles
Buyer Loses £12k Stamp Duty Refund Appeal for Derelict Bungalow
A recent UK Resident, for the context of this article lets call him, Simon: recently faced a setback
Amarjeet Mudan & Tajinder Mudan v The HMRC Commissioners
Mr. and Mrs. Mudan (the appellant) purchased 14 Liskeard Gardens, London SE3, for £1,755,000 on 5 August 2019,
About Us
UK Property Accountants is a leading firm of chartered certified accountants and chartered tax advisers specialising in the property and real estate sector with an office in London.
Copyright 2023 UK Property Accountants, all rights reserved.