Other multi-million pound properties in Knightsbridge were also sold utilizing a SPV.

As one example of the massive savings to be had - having an SPV being a vehicle for getting a house for ??6.95 million can make a saving of ??240,250.00 in SDLT (while using current rate of 4%).

SPVs and SDLT avoidance is not new, stories abounded inside newspapers that accused Tesco's of SDLT avoidance schemes by which 36 of the stores are held by UK limited partnerships with Cayman island registered partners. Although 2010 Finance Act went someway to bar the SDLT tax avoidance by partnerships, the us government stays shy in tackling the situation with companies.

Self-Build - buy the land and build the home yourself!

Merely the plot is liable to tax and not the expense of the final value of the property. Beware though- this is simply not just like investing in a parcel and purchasing home off-plan to take it. Rogues may very well be considered as two linked transactions with the HMRC and taxed collectively on their combined value.

Beware

There are numerous companies who purport to offer 'SDLT' avoidance schemes some warranting a '100%' saving.

However, in spite of Special Purpose Vehicles, there won't be any guarantees (especially if the avoidance scheme is not notified to HMRC beneath the statutory rules) and it must be bourne in mind how the time period limit for raising a discovery assessment is six years after the effective date of the transaction or, regarding fraud or neglect, 21 years.

HMRC has issued discovery assessments to purchasers some three years after completion where they have tried to avoid SDLT by using a marketed scheme, that assessments are be subject to pending appeals. With effect from 1 April 2011, the time limit clause for the discovery assessment is going to be 4 years following your effective date from the transaction, increasing in order to six years in the eventuality of carelessness and 2 decades if your non-payment is deliberate or taxpayer didn't deliver a land transaction return in order to abide by the DOTAS rules.

The most crucial priority in planning a tax strategy whether in getting a property or operating a property portfolio is to seek professional advice coming from a tax accountant who specialises of this type.

Stamp Duty Land Tax (SDLT) was introduced in December 2003 and replaced Stamp Duty.

SDLT is a tax around the final cost of the home you're buying and refers to all purchases of properties, where the cost is over a certain threshold.

Your solicitor will counsel you of all the so-called costs involved with moving house, that Stamp Duty Land Tax can often be an amazing one.
Your solicitor can tell you for your requirements how Stamp Duty Land Tax is calculated and under what circumstances you will be exempt from paying SDLT. It is crucial that you have a clear picture of what exactly costs you will face when moving home as SDLT, the price of surveys, removal companies and search fees and all sorts of mean a substantial sum and may affect the amount you've budgeted to make available with a property.

If you're a very first time buyer you will be able to purchase a house to get a higher amount compared to those who have already owned home before paying Stamp Duty Land Tax.