Property Tax Case Studies2004-2014

Tax lawyer with over 30 years experience

Set up her own practice after 16 years in the City

Profiled as a leading authority on VAT

Stamp Duty Land Tax book author and update to be published in 2014.

Also specialises in Stamp Duty Land Tax, VAT and Business Tax

About Ann…

A summary has been provided and please click the link to read the full case study.

The following case studies on Property Tax cover a range of industries and issues

Disclaimer:At the time of original

publication these case studies were technically accurate however, as tax law and

practice change rapidly, you should take specific advice

before taking any action

A building consisting of two floors of offices above a shop was owned by the trustees of a small self-administered pension scheme (SSAS).  The trustees owned the freehold in their capacity as trustees and were also the beneficiaries of the SSAS which had been set up by their employer (E Ltd).  E Ltd was wholly owned by them.  Work was nearing completion on the conversion of the offices into flats. CLICK HERE TO READ

SDLT - Multiple dwellings and sale and leaseback reliefs

A building had been divided into four leasehold properties, two residential units (let to A and B respectively) and two commercial units (let to C and D Ltd). The freehold of the building was owned by NGM Ltd, a property management company. A, B and D Limited were also the directors and shareholders of NGM Ltd. CLICK HERE TO READ

Tax treatment of proposed lease changes

A commercial property had been acquired in January 2012 by Mr and Mrs P. The purchase was financed by a loan from ABC Limited, a company in which Mr and Mrs P owned 100% of the shares. By December 2012 the property had a market value of around £500,00 and Mr and Mrs P had been advised that the property be transferred into their pension fund. CLICK HERE TO READ

SDLT - Transfer of property to a pension fund

A company was buying a development site with planning permission to construct eight houses for just over £2 million. The site was being sold by a single vendor and was made up of one existing house and its garden plus three abutting back gardens. The existing house and garden accounted for less than £2 million of the total consideration. What was the applicable SDLT rate?CLICK HERE TO READ

SDLT - Rate of tax?

A Jersey Property Unit Trust (‘JPUT’) owned an industrial site in the UK.  JPUT had received an offer for part of the site and the purchasers wanted to minimise SDLT on the acquisition. Advice was sought on whether it was possible to achieve this by JPUT issuing additional units to the existing unit holders in proportion to their existing holdings.  CLICK HERE TO READ

SDLT - UK land held in a JPUT

VAT advice was sought on the effect for a tenant of the service charge provisions in a lease of a commercial unit in a building which consisted of two commercial units and eight flats, all owned by the same lessor.  Each lease also carried the right to use a designated car park space.  CLICK HERE TO READ

VAT - Lease service charge provisions

In December 2006 the parents of RB bought a flat for £400,000.  The flat was acquired as joint tenants by RB, his father and his mother. The purchase price was provided by RB’s parents and SDLT was paid on that figure. At the time of acquisition it was agreed that RB would pay his parents £133,333.33 (one third of the total purchase price) for his share. This amount was left outstanding as a debt. CLICK HERE TO READ

SDLT - Linked transactions

The client is non-resident (he lives in Ireland).  He owns 100% of a UK company(‘UK Co.’) which in turn owns various UK properties which are all mortgaged.  The client has been advised by his Irish lawyer to exchange his shares in UK Co. for shares in a new Luxembourg company (‘Lux Co.’).  As they have similar share exchange rules in Ireland to those in the UK, there should therefore be no Irish tax on the share swap. CLICK HERE TO READ

SDLT - Group relief Q & A

Scenario OneA Limited Liability Partnership owns a portfolio of UK properties which are let.  Two unconnected individuals are the members of the LLP. 

Scenario TwoAn LLP holds interests in property and is a PIP.  The members of the LLP are two unconnected individuals (A and B) and a company (‘Co’) connected with A.  A introduces a chargeable interest into the LLP.CLICK HERE TO READ

SDLT - Two LLP scenarios

A husband and wife were in partnership, through a limited liability partnership (LLP), with a company (Co) which both owned in equal shares. LLP was a property investment vehicle. The properties held by LLP were transferred into LLP after October 2003 and SDLT was paid. CLICK HERE TO READ

SDLT - Transfer of property to a corporate partner on partnership dissolution

Q: Is it preferable for SDLT purposes to have a 5 year lease with option to renew for further 5 years with first year of follow-on lease rent-free or a 10 year lease with a break clause at the end of year 5 which is exercised? CLICK HERE TO READ

SDLT - Option to renew lease or break clause

Refer to Ann’s website for access to all the Property Tax case studies

Property Tax Case Studies

Any questions?Leave a comment or….

Contact Ann by email:

ann@annlhumphrey.com

For access to case studies on the other tax areas, please see below

More Case Studies

Stamp Duty Land Tax (SDLT)

Business Tax VAT