With Pfida’s home finance solution, SDLT is paid by our special purpose company Pfida Finance PLC (the PLC) when the property is purchased. The PLC pays the corporate rate of SDLT.

The SDLT paid is then added to the purchase price, and the combined sum forms your acquisition price - this is the price at which you would normally purchase the property from the PLC, in line with our policy.

You will need to pay your SDLT when the title of the property is transferred to you at the end of our agreement.

For example, if a property is purchased for £100,000, and the PLC pays SDLT of £3,000, when you decide to purchase the property, our policy is to sell it to you at the acquisition cost (£103,000).

The way to think about this is to consider the scenario of buying a property you have been renting from your landlord. When the landlord purchased the property initially, they took on the ownership, risks and responsibilities of the property and paid SDLT. If you offer to purchase the property from your landlord, they will charge you market price and then you will pay SDLT on the purchase, making use of any reliefs that may be available at that time.

For example, the landlord purchased the property 30 years ago for £100,000 and paid £3,000 SDLT. 30 years later it is now worth £400,000, so that is the price they sell it to you for and your SDLT is calculated on £400,000. With our product it is the same; however instead of selling the property to you at the current market price of £400,000 in the example above, our usual policy is to only charge you the acquisition price of £103,000, and SDLT will be applied on this amount. any upside in the property in excess of what we charge, is yours to keep.