The Autumn Statement: Changes to buy-to let property and Stamp Duty Land Tax

December 2, 2015

Further to the Chancellor’s Autumn Statement last week, highlighted below are the changes relating to buy-to-let property and Stamp Duty Land Tax.

Buy-to-let SDLT Rate Increase

The proposed new rates are to be introduced for purchases from 1st April 2016:

Residential Purchase Price Band Existing SDLT rates New SDLT rates as proposed from 1st April
£0.00 to £40,000 0% 0%
over £40,000 to £125,000 0% 3%
over £125,000 to £250,000 2% 5%
over £250,000 to £925,000 5% 8%
Over £925,000 to £1.5M 10% 13%
Over £1.5M 12% 15%

The government will issue a consultation document, setting out the policy design, which is anticipated to include any proposed exemptions from the higher rates for corporates or funds making significant investments. It is also assumed that some more information will be provided, for example whether multiple dwellings relief will be available and how the new rates will interact with the commercial rates for six or more dwellings and what an “additional property” will be defined as.

Extension to reliefs from 15% SDLT Rate and ATED

An extension of the reliefs from the 15% SDLT rate and ATED have been announced for acquisitions for demolition or conversions into non-residential use, as well as for the purpose of equity release schemes. These changes will apply from 1st April 2016.

Other Property Announcements

The statement furthermore included announcements to the extent the SDLT filing and payment deadlines will be shortened to 14 days after completion.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice.

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