Key points
- Stamp duty land tax is a tax on acquisition while the annual tax on enveloped dwellings is an annual property tax but is also a tax on acquisition and sale.
- Scotland and Wales also have ATED but do not have ATED-related SDLT.
- Hybrid ownership propositions between connected parties are more complex.
- Try to spot the higher ATED-related SDLT outcome at an early stage during the purchase process.
The Fiddler on the Roof is a metaphor in the story of Tevye the milkman with the fiddler in question in a precarious and uncertain position. It’s also a precarious position to take to assume that the annual tax on enveloped dwellings (ATED) and ATED-related stamp duty land tax (SDLT) work in identical ways as they derive from different parts of the tax code.
This article contains examples of scenarios involving joint purchase of a dwelling by a company...