Is SDLT on Properties Always Necessary? - By: Reynaldo Marshall

Tax planning is minimizing the required taxes owed to the Government by using the provisions in the taxation law in your favor. This is entirely legal. However tax avoidance is to suppress your actual income or tax dues which is a criminal offence. Stamp Duty Mitigation or Stamp Duty Land Tax (SDLT) planning is definitely an entirely legal type of tax planning, which utilizes the provisions of the UK tax law, to lessen the level of Stamp Duty Land Tax to be paid.

Should you have obtained a property recently, you have to be wondering why your Solicitor did not let you know to implement this legal technique to minimize the Stamp Duty Land Tax? The facts are it requires Tax planning to a higher degree and specialized knowledge is needed for Stamp Duty Mitigation. You need an authority within this field and this will be beyond the competence of your ordinary conveyancing lawyer. You can be sure the entire process is legal as the tax planning will be disclosed to the HMRC as well as a corresponding scheme disclosure number is received. This guarantees that all the law under HMRC are fully complied with. To add to this, you'll get a written legal opinion from the leading Counsel. With both of these facts in your file, nobody can accuse you of tax evasion.

Stamp Duty Mitigation are available in any transactions, both residential in addition to commercial. The higher the cost of the transaction, the more beneficial may be the scheme. Though the entire advantage of the Stamp Duty Mitigation planning is going to be for transactions above £500,000, even for transactions in the range of £250,000, you will get substantial savings. Usually you'll need to pay the advisers 50% of your SDLT plus applicable VAT. The balance 's what it will save you so that as you will observe, for top transactions, the savings is going to be substantial.

1000s of cases of Stamp Duty Mitigation have been completed in the UK successfully. The tax planning method has been questioned on a few occasions by HMRC, nevertheless they have been satisfied by the clarifications. This is that the tax planning is carried out employing a legal loop hole for reducing stamp duty. Courts have time and again held that working with a legal loop hole to help reduce tax is legal and it's the duty of the Government to plug the loop hole.

The Tax Planners who suggest Stamp Duty Mitigation are so clear on the success of the scheme, that they offer you a full refund of fees in case of a successful challenge by HMRC. There are lots of Chartered Accountants too who advise the clientele to go into for Stamp Duty Mitigation since they are convinced of its validity. In fact you can get your solicitor to talk to them, so you know what papers you're signing, for Stamp Duty Mitigation. However they could insist on a non disclosure agreement to generally be signed, before they part with the information concerning the scheme.

Because it is legal and comes with all of the paperwork perfectly done, why don't you take a look at tax planning to minimize your SDLT? You may take benefit from Stamp Duty Mitigation provided the entire process of buying isn't finished in all respects. So it may be beneficial to check it out.

About the Author

I'm a self-employed tax consultant specialising in Stamp Duty Land Tax avoidance. I studied at Oxford in the 1980's, and worked for different major corporates throughout the 80s and 90s in accountancy and investment banking. In 2001 I set up in business helping people avoid stamp duty.

Where Do you Discover ways to Avoid SDLT, Article Directory Source: http://www.articlerich.com/profile/Reynaldo-Marshall/231542

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