Using SDLT Group Relief for Tax-Efficient Property Transfers
When restructuring a corporate group, transferring property assets between group companies can trigger significant SDLT. However, SDLT group relief allows qualifying businesses to transfer properties without incurring SDLT, as long as they meet HMRC’s 75% common ownership rule and maintain the structure for at least three years.
Key benefits of SDLT group relief:
Case Study: How we saved a client £150,000 in SDLT
A property investment company with three subsidiaries needed to transfer a £3M commercial property from one entity to another to improve operational efficiency. Normally this would incur an SDLT charge of £150,000 (5% on £3M). By qualifying for SDLT group relief, we facilitated the transfer tax-free, ensuring compliance with HMRC’s conditions. The restructuring enabled better asset protection and financing flexibility and making the business more scalable.
Planning a property transfer within your group? Get in touch with us.
Key benefits of SDLT group relief:
- No SDLT charge - Eligible property transfers within a group are exempt from SDLT, reducing tax costs.
- Improved asset management - Allows businesses to centralise property ownership for better financial and tax planning.
- Facilitates business restructuring - Useful for mergers, demergers, and strategic asset reallocation without excessive tax burdens.
Case Study: How we saved a client £150,000 in SDLT
A property investment company with three subsidiaries needed to transfer a £3M commercial property from one entity to another to improve operational efficiency. Normally this would incur an SDLT charge of £150,000 (5% on £3M). By qualifying for SDLT group relief, we facilitated the transfer tax-free, ensuring compliance with HMRC’s conditions. The restructuring enabled better asset protection and financing flexibility and making the business more scalable.
Planning a property transfer within your group? Get in touch with us.
