Autumn Statement 2014: SDLT Reform on Residential Property
Earlier today George Osborne announced a significant change to the way in which residential property transactions will be taxed. Somewhat ironically after the Independence referendum in Scotland, the Chancellor’s changes will bring the rest of the UK’s taxation of residential property into line with the recently introduced taxation system in Scotland.
The new regime introduces a progressive system, working in a similar way to Income Tax, whereby increasing rates of Stamp Duty Land Tax (‘SDLT’) apply to different bands of the purchase price. The SDLT rate will start at 0% on the first £125,000 of the purchase price, before increasing up to a new maximum of 12% on the purchase price above £1.5m; previously the maximum rate of SDLT on personal transactions was 7%.
Please contact Ian Daniels, Head of Property, if you require any further information and assistance.
Tel: 020 7969 5502