SDLT - higher rates for additional dwellings: Adding to or changing existing interests - Stair-casing, leasehold enfranchisement
The Higher Rates of Stamp Duty Land Tax will not apply to transactions where, subject to certain conditions, someone merely makes changes to the nature of their existing major interest in a dwelling [Para 7A].
The conditions are:
- the dwelling in question has been the purchaser’s only or main residence for the whole of the 3 year period which precedes the date of the change transaction [Para 7A(1) (b)],
- in the case of a lease extension, the existing lease has 21 years or more to run [Para 7A(2)(b)],
- in the case of a joint tenant, the purchaser is beneficially entitled to 25% or more of the existing interest [Para 7A(3)(b)],
- in the case of tenants in common, or someone who shares equally with others in an undivided share, the purchaser is beneficially entitled to 25% or more of the existing interest [Para 7A(4)].
`Para` references are to paragraphs in Schedule 4ZA to the Finance Act 2003.