What is sub-sale relief?

Sub-sale relief is available to a buyer who enters into a contract to complete a land transaction and before that land transaction completes, transfers the rights for that land transaction to a third party.

What does sub Sell mean?

A sub-sale (as opposed to an assignment of a contract) is where a seller contracts to sell land to an intermediate buyer who simultaneously (on the day of purchase) sells it on to the ultimate buyer.

What is sale and sub-sale?

Sub-sale and sub-purchase, sometimes known as confirmor sale, occurs when a purchaser/confirmor enters into an agreement for sale and purchase of a property with the owner/vendor but before completion sub-sells the property to a sub-purchaser.

What is Sub Sales property Singapore?

The term sub-sale refers to a property that’s bought by a buyer and then sold to another buyer before the unit is completed. More simply, a subsale is the secondary sale of a unit before it is completed.

Do councils pay SDLT?

A key difference between councils and other social housing providers is that councils generally pay SDLT on their land purchases whereas other registered social landlords do not. The SDLT return can be filed claiming that relief.

What is stamp duty relief?

Stamp Duty reliefs can reduce the amount of tax you pay, however you must complete an SDLT return in order to claim, even if no tax is payable. You don’t have to pay SDLT or file a return if: property is left to you in a will. property is transferred because of divorce or separation.

How does a sub-sale work?

A sub-sale is where A contracts to sell a property to B but, before completing the purchase from A, B then contracts to sell the property to C. There are two sale contracts (A–B and B–C). Completion can be effected either by a single transfer (A–C at B’s direction) or by two transfers (A–B and B–C).

What is difference between sub-sale and resale?

In layman terms, it means the sale of a unit in an uncompleted project by the original buyer to another buyer. A resale property transaction is simply an owner selling a unit in a project that is already completed to another buyer.

What is property sub-sale?

Subsale properties are properties which are resold from the existing owner. This means that when you buy a subsale property, you are buying from another homeowner, not directly from the developer. New properties in the primary market on the other hand, are typically bought from developers.

Do I need to file an SDLT return?

You can give property or land away or transfer ownership to another person. If there’s no ‘chargeable consideration’ you don’t have to pay SDLT or file a return. The chargeable consideration is a payment that can be cash or another type of payment, including: goods.

What is first time buyers relief?

First-time buyer stamp duty relief In 2017, the Government announced first-time buyers paying £300,000 or less for a residential property will pay no stamp duty. There’s no relief on properties above £500,000.

Why do we need to offer Sub sale relief?

For years, sub-sale relief has allowed many to minimise double charges to SDLT, and for others it has offered a convenient way to make substantial SDLT savings on transactions that, in all other guises, would be tantamount to a tax avoidance scheme.

How does a sub sale work in SDLT?

In its simplest form, a sub-sale or a ‘transfer of rights’, as it is termed under the SDLT rules, occurs when A contracts to sell some land to B and, before that transaction completes, B enters into an arrangement whereby C acquires the land in question.

How is SDLT levied on additional residential property?

For more information, see Practice note, SDLT: supplemental 3% charge on additional residential property. The basic rule is that SDLT is levied by reference to the chargeable consideration provided for a land transaction.

Is the sale of a share chargeable to duty?

In accordance with Section 58 (5) the transfer completing the sale and the subsale is chargeable to duty only in relation to the sub-sale (thus relieving the effect of Section 4 of the Stamp Act). However, Section 27 (3) (b) would deny group relief for that transfer.