We were expecting a number of changes aimed at stamping out stamp duty land tax (SDLT) avoidance but the changes announced by the Chancellor have gone far further than was expected. They include:
- 7% SDLT charge on the acquisition of residential properties over £2 million from tomorrow, 22 March 2012.
- 15% SDLT charge when residential properties of over £2 million are acquired by “non natural persons” such as companies from today, 21 March 2012.
- the Government will consult on the introduction of an annual charge on residential properties owned by non natural persons valued at over £2 million; legislation to be introduced with effect from April 2013.
- capital gains tax (CGT) regime to be extended to disposals of UK residential property (or shares or interests in such property) by non-resident, non natural persons; to be introduced with effect from April 2013.
- SDLT sub-sale relief to be restricted so that the grant or assignment of an option cannot satisfy the requirements of the sub-sale rules. This will apply for transactions on or after 21 March 2012.