Stamp Duty Land Tax Dodge Backfires

8th August 2019 by

When a couple wished to avoid paying Stamp Duty Land Tax (SDLT) on the purchase of a property, they hit on what looked to them like a great idea. Instead of buying the property outright, they paid for it in two stages – a deposit, plus the purchase of an annuity to be assigned to the seller. The annuity paid annually was very small, but the seller had the right to redeem it for a lump sum (£726,750), which corresponded to the expected balance due based on the market value of the property at the time of the sale. Continue reading →