SDLTM09765 - SDLT - higher rates for additional dwellings: Individuals – summary of Conditions - purchase of a single dwelling - Para 3(1) Sch 4ZA FA2003

A purchase of a major interest in a single dwelling by an individual will be a “higher rates transaction” and the higher rates of SDLT will apply to the purchase, if at the end of the day of purchase each of conditions A to D are met.

• Condition A - the chargeable consideration is £40,000 or more

• Condition B - the major interest purchased is not subject to a lease which has more than 21 years to run on the date of purchase

• Condition C - the purchaser owns a major interest (with a market value of £40,000 or more) in another dwelling which is not subject to a lease which has more than 21 years to run at the date of purchase of the new dwelling, and
• Condition D - the dwelling being purchased is not replacing the purchaser’s only or main residence.

If any of Conditions A to D are not met, the transaction will not comprise a “higher rates transaction” and the higher rates of SDLT will not apply to the purchase on account of that person’s circumstances.