GSC’s Private Client team has prepared a Private Client Tax Briefing note on the recent SDLT consultation on higher rates for additional residential properties.
There are likely to be significant areas of uncertainty with regards to how the legislation will operate due to the short nature of the consultation period (which is closing on the 1 February 2016) and the speed with which the new proposals are due to pass through parliament and become law (scheduled for 1 April 2016). In view of this, whether you are a UK-resident looking to purchase an additional property or a non-UK resident looking to purchase your first UK property, advice should be sought as to whether the purchase will be subject to the higher SDLT rate and also to ensure the compliance and administration aspects are correctly observed.
SDLT consultation on higher rates for additional residential properties – the government proposals for implementing an additional SDLT rate of 3% on the purchase of additional residential properties was released on the 28 December 2015 following the Chancellor’s initial announcement in the 2015 Autumn Statement. The higher rate is due to apply to all contracts entered into on or after 26 November 2015, where completion takes place after 1 April 2016.