Foot Anstey's Real Estate team acts for London Borough

The Real Estate team at Foot Anstey LLP has acted for a London Borough which needed advice regarding Stamp Duty Land Tax (SDLT) on the purchase of a 42-unit block to provide much-needed affordable housing in the borough.

The Foot Anstey team included Lara Borrett-Lynch (Legal Director) and Douglas Smith (Technical Tax and Trusts Counsel).

The London Borough made a claim for multiple dwellings relief to HM Revenue & Customs (HMRC). HMRC considered that the calculation of tax was incorrect, and more was owed from the London Borough.

The Foot Anstey team looked at the matter and found that HMRC’s findings were incorrect and there should be a claim for Social Housing relief. The team successfully investigated whether the London Borough was a registered provider of social housing, and whether right to buy receipts represent a “public subsidy” for the purposes of Social Housing Relief.

As a result, HMRC agreed that Social Housing Relief applied and therefore no SDLT was payable. The assessment was reduced to nil and the tax previously paid was refunded.

Thanks to Foot Anstey's advice the London Borough is now reviewing previous purchases with HMRC and determining the possibility of refunding all SDLT that was paid on transactions involving the right to buy receipts over the past 4 years.

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