Q: My client, Alyssa, has recently married her husband, Amandeep. Amandeep currently owns 100% of the home they live in (located in England), and Alyssa now intends to purchase a 50% interest in that property from him. Alyssa also owns another residential property which is let out. Would the acquisition of the 50% interest be subject to the higher rates of Stamp Duty Land Tax (SDLT)?
A: Normally, the SDLT higher rates apply where an individual acquires an interest in an additional residential property and, at the end of the transaction, owns more than one dwelling.
However, special rules apply to spouses and civil partners. HMRC’s guidance confirms that transfers of ownership interests between spouses are not subject to the higher rates where:
- the property is the couple’s only or main residence; and
- no other person is involved in the transfer.
Although Alyssa owns another buy-to-let property, the property she is acquiring an interest in is the marital home and therefore treated as her main residence. Accordingly, the higher rates surcharge should not apply to the acquisition of the 50% interest from Amandeep.
Standard SDLT rules would still apply to any chargeable consideration given by Alyssa (for example, cash paid and/or mortgage debt assumed).
Q: Client is a UK VAT registered cafe that makes both eat in and takeaway sales. They have a children’s menu and are aware of the Chancellors statement in May 26, that there will be a temporary reduced rate of 5% for meals sold between 25th June and 1st September 2026. Does the Reduced Rate apply to all sales made by the cafe during the period stated?
A: No. It is only children's meals that are held out for sale from a children's menu that are reduced rate. Further this only applies to eat in meals not take away meals. The standard rate, 20%, will continue to apply to any meals not on the children's menu during this summer period. Normal rules regarding takeaway will apply ie cold food zero rate, hot food standard rate.
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
About Markel Tax
Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.