Legal Tip 10: Aggregation of Stamp duty

I have noticed this when reviewing sales that on occasion two or more transactions will have the same transaction reference.

 

Not many conveyancers or solicitors seem to know about tis.

 

I'm about to enter into a contract to buy 2 vacant lots in the one subdivision from a developer. I will arrange separately to build two separate dwellings.

According to DUT 036v3 it appears as though there is an exception at para 24(c) for the purchase of single lots in a subdivision where other factors in paragraph 22 are not present. From looking at paragraph 22 as long as the two contracts aren't interdependent then they shouldn't be aggregated (contract currently being drafted).

I'll be obtaining legal advice this week, but thought i would see if anyone else has the same experience.

 

The aggregation rule is intended to achieve the higher level of tax where two or more parcels occur within 12 months and the parties are the same or associates or there is interdependancy.

 

sounds like aggregation would apply in this scenario - but you might get lucky