As previously announced, and following consultation, higher rates of SDLT are to be introduced for purchases of additional residential properties from 1 April 2016. The higher rates will be 3% above the current rates. SDLT will be calculated as follows: £0 – £125,000 3% £125,001 – £250,000 5% £250,001 – £925,000 8% £925,001 – … Continue reading SDLT and residential property – Update on the additional 3% charge
The 2015 Autumn Statement is notable for the lack of significant tax measures. The main tax announcements related to residential property (see our separate blog post). A consultation on the company distribution rules will be published later this year. The government will go ahead with changes to tax as income asset managers’ performance incentives unless … Continue reading Autumn Statement 2015
The Chancellor has predictably announced further restrictions on the non-dom rules in today’s 2015 Summer Budget. The key measures are: non-dom status will only be available for IHT and income tax and capital gains tax for the first 15 years of residence in the UK; some UK-born individuals who move abroad will be prevented from … Continue reading Non-doms: more restrictions
Continuing the trend of making changes to the taxation of residential property in recent Budgets the Chancellor today announced three residential property tax changes: • Limiting the deduction of finance cost in respect of residential property by individual landlords • Introducing an additional inheritance tax nil-rate band for residential property • Extending inheritance tax for non-doms … Continue reading Residential property tax rollercoaster
The announcements today by the Chancellor included surprises, confirmed many predictions but some topics were notably absent. Income tax rates – no major review Recent debates on income tax rates have been highly political and will continue to be so as we approach the election. The Chancellor has increased the personal allowance by £500 for … Continue reading Wish you were here: what was missing from Budget 2014?
Extension of taxation on UK residential property held by non-natural persons As one of a number of measures aimed at tackling tax avoidance, the Government is extending the package of taxes on “enveloped dwellings”, lowering the threshold so that the relevant taxes apply to residential properties worth over £500,000 (rather than only to those worth … Continue reading More changes afoot for taxation of residential properties…
Positive growth forecasts and falling unemployment set a positive tone for this year’s Budget speech, although the Chancellor was frank in his admission that the deficit is still too large. He targeted measures to increase saving, investment, building and exports. We are reviewing the Budget documents which have now been released and will be blogging … Continue reading Export more. Save more. Invest more. Build more.
As part of its anti-avoidance strategy the Government has today announced the introduction of amendments to the SDLT legislation to counteract two SDLT avoidance schemes, mostly used in respect of residential property, which sought to take advantage of the SDLT subsale rules. The SDLT subsale rules address the situation where, broadly, a person enters into … Continue reading Retrospective changes to the SDLT subsale rules
There had been speculation that the introduction of the Annual Residential Property Tax, as well as extension of the capital gains charge, would be deferred. But not a bit of it. The new tax and the extended charge will come into force from 1st and 6th April respectively as originally planned. Whilst confirmed today, details on the precise … Continue reading High-value residential property update
A stamp duty land tax (SDLT) anti-avoidance scheme that has been widely used by residential purchasers has been stopped by measures announced in the Budget. The scheme broadly involved the purchaser granting an option simultaneously with completion of the acquisition of the property to an unconnected third party, exercisable many years in the future. The … Continue reading More on the sub-sale and other general SDLT anti-avoidance measures