Stamp duty land tax updates
Current Issues | Tax | 21st April 2016
If you buy a second home in England, Wales or Northern Ireland, be aware of changes to stamp duty land tax (SDLT). The Government is consulting on the extra 3% SDLT on ‘second homes’. The higher rate will apply to purchases of a second residential property completed after March 2016 unless contracts were exchanged before 26 November 2015. Your ‘first home’ can be anywhere in the world. It’s not currently known whether freehold reversionary interests of over £40,000 will be counted.
If the only property initially owned is your main residence and you dispose of it within 18 months of buying its replacement, the extra SDLT initially paid will be refunded.
Separately, the Government is considering requiring SDLT to be paid within 14 days of a sale rather than 30 days as at present.
Specific advice should be obtained before taking action, or refraining from taking action, on any of the subjects covered above. If you would like advice or further information, please speak to your usual Shipleys contact.