Overview
At Compass, we partner with conveyancing firms to ensure Stamp Duty Land Tax (SDLT) is calculated correctly, protecting clients, reputation, and compliance.
In this case, a client was staircasing to 100% ownership of a shared ownership property to enable a same-day onward sale. The client had been told SDLT would be payable on the staircasing, but there was uncertainty due to the timing and contractual structure of the transaction.
The Challenge
Two factors created potential risk and confusion:
- Whether SDLT applied to the staircasing element in a same-day sale
- Whether the contractual linkage of the staircasing and onward sale allowed for subsale relief
A misinterpretation could have resulted in overpayment, compliance issues, or professional indemnity exposure for the solicitor.
Our Approach
Compass reviewed the full structure and timing of the transaction. We assessed the contractual linkage between the staircasing and the sale and confirmed that the arrangement qualified for subsale relief under SDLT rules.
We discussed the findings directly with the solicitor, providing a clear, evidence-backed explanation and supporting the firm in filing a compliant return.
The Outcome
Our review confirmed that the client was not liable for any SDLT on the staircasing element. By applying subsale relief correctly, the transaction was fully compliant, and the client was able to complete the onward sale smoothly with zero unexpected tax liability. The solicitor could proceed with confidence, having clear evidence to support the SDLT treatment, and the client’s trust in the firm was preserved.
Key Results
- Avoided SDLT overpayment and potential HMRC enquiry
- Provided clarity and reassurance to the solicitor and client
- Preserved client confidence while demonstrating due diligence
- Highlighted the importance of expert review in complex staircasing and subsale scenarios
Conclusion
This case illustrates how timing and transaction structure can create hidden SDLT complexities. Compass ensures solicitors have the clarity and technical insight needed to apply reliefs correctly, protecting clients, compliance, and professional reputation.
