Changes to the Stamp Duty Land Tax
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11 April 2012
A new 7% rate of Stamp Duty Land Tax
(SDLT) on homes purchased over £2 million began from 22 March 2012.
Until this date, the maximum tax payable on purchase of residential
property was 5%.
Under the new rules, any purchaser that acquires a UK residential
property (freehold purchases and leasehold assignments or) for a
purchase price that exceeds £2 million, must pay 7% SDLT. This will
also apply to the grant of a lease where the premium exceeds £2 million.
The new rate will apply to the effective date (the date of completion)
of the transaction.
There are transitional provisions which will ensure that, broadly
speaking, the old rate will continue to apply in respect of contracts
that were entered into before the 22 March 2012 but completed on or
after this date.
If you need any assistance with a residential or commercial
property matter, contact our Property Department and speak to one of
our solicitors who will be happy to assist you.
Inam Ali is a Solicitor
specialising in Commercial and Intellectual Property Law, and can be
contacted via email: email@example.com
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Article Published/Sorted/Amended on Scopulus 2012-09-12 09:06:13 in Tax Articles