Carter Jonas
Carter Jonas

If you own a country house

HIGHLIGHTS
Jacobean House
Sold in 2012 with a guide price of £6.5m
Property would have attracted SDLT of 7% if bought by an individual
Property would have attracted 15% if bought by a non-natural person
Restructuring could reduce the value of the core asset below £5m, thereby reducing the annual tax to £15,000
COUNTRY HOUSE
image A Jacobean Manor House, cottage and 3 flats with extensive gardens and grounds including an ornamental lake, tennis court, and orchard set in 14 acres. The property was marketed and sold by Carter Jonas in 2012 with a guide price of £6.5m. This property would have attracted SDLT of 7% if bought by an individual or 15% if bought by a non-natural person.

The new owner, if a non-natural person, will now become liable for the Annual Residential Property Tax, which as the value is between £5m and £10m, will be £35,000 pa.

However they now have a choice of either restructuring the property to reduce the value of the core asset to a figure below £5m, and thereby reducing the annual tax to £15,000, or transferring the ownership into an individual’s name to avoid future ARPT but becoming liable for a further Stamp Duty payment of 7% of the transfer value.

Jasper Feilding

Partner - Head of London Country Agency

Jasper is Head of the London Country agency based in the Mayfair office. He started his career handling the sale of country property only a few yards from where he now sits in the mid 1970s and has ...

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