Post by neuro on Jun 9, 2016 14:49:18 GMT
Apologies if this has been discussed before...
Regarding the amortisation of purchase costs, one may take the view that the buyer of the original property share (who in theory benefits from any purchase discounts) should absorb all of that cost. Having spoken to PP, I now realise that even SDLT is amortised.
"Purchase costs for a property include Stamp Duty Land Tax, third party professional fees (legal and surveyor, and occasionally brokerage), pre-letting expenses (including furnishing) and other third party costs relating to purch"ase.
For a Leveraged property investment, purchase costs may also include a debt arrangement fee payable to the bank.
These purchase costs are unavoidable and are incurred by all individuals and companies that acquire buy-to-let properties in the UK. We amortise (depreciate) the purchase costs over the period to the first ‘five year anniversary’, which means we spread the cost over five years."
Given that buyers on the SM are charged an additional 0.5% in SDLT, should they really also be paying the accrued SDLT from the original purchase?
Regarding the amortisation of purchase costs, one may take the view that the buyer of the original property share (who in theory benefits from any purchase discounts) should absorb all of that cost. Having spoken to PP, I now realise that even SDLT is amortised.
"Purchase costs for a property include Stamp Duty Land Tax, third party professional fees (legal and surveyor, and occasionally brokerage), pre-letting expenses (including furnishing) and other third party costs relating to purch"ase.
For a Leveraged property investment, purchase costs may also include a debt arrangement fee payable to the bank.
These purchase costs are unavoidable and are incurred by all individuals and companies that acquire buy-to-let properties in the UK. We amortise (depreciate) the purchase costs over the period to the first ‘five year anniversary’, which means we spread the cost over five years."
Given that buyers on the SM are charged an additional 0.5% in SDLT, should they really also be paying the accrued SDLT from the original purchase?