The Chancellor has today announced that with effect from 22 March 2012 the rate of Stamp Duty Land Tax (SDLT) will be 7% for residential properties over £2 million. In addition the Government intends to tackle the “enveloping” of high value properties into companies by introducing a 15% rate of SDLT for residential properties over £2 million purchased by “non-natural persons, such as companies”. This new rate will take effect on 21 March 2012. In addition, the Government will consult on the introduction of an annual charge on residential properties valued at over £2 million owned by “non-natural persons” with the intention of legislating in the Finance Bill 2013 for commencement in April 2013.
Please contact Susan Perry, Senior Associate in Druces LLP’s taxation team for further information on Stamp Duty Land Tax and the changes imposed by the Budget.