Do I Pay Stamp Duty on Life Tenancy Property?
All properties are subject to this tax, however Stamp Duty on Life Tenancy Property has some unique exemptions.
Like all property purchases in the UK, Life Tenancy properties are subject to Stamp Duty Land Tax. However there are some great exceptions.
The amount of SDLT charged will depend on the value of the property and different rates are applied to different values.
The normal threshold for Stamp Duty starts at £125,000, although there are some exceptions to this, such as for first time buyers.
Does only the base rate of Stamp Duty apply to Life Tenancy Properties?
With our Life Tenancy Investments, many of our properties are below the threshold of £125,000, so no stamp duty would apply to these properties. Due to the unique set up of a Life Tenancy Agreement, all of the properties we offer to investors are also exempt from the 3% Stamp Duty Surcharge regardless of how many properties that investor owns.
Having little to no Stamp Duty is certainly one of the many benefits of Life Tenancy Properties over Buy to Let. This could be a significant saving on multiple purchases, bearing in mind Stamp Duty is nothing more than a tax and once paid can never be recovered or offset.
So yes, Life Tenancies are indeed subject to SDLT if the property is over the threshold however only liable on the base rate, not the secondary surcharge.