Stamp Duty Land Tax consultation launched
You can now see our response to the consultation attached below. In addition we have met in person with the Treasury to outline our concerns.
The Government has launched its consultation into controversial changes to Stamp Duty Land Tax (SDLT).
In his Autumn Statement, the Chancellor George Osborne announced plans for an additional 3% stamp duty added to any property bought as a buy-to-let or second home. These are due to be brought on April 1 2016.
The Treasury has now issued an open consultation document, ‘Higher rates of Stamp Duty Land Tax on purchase of additional residential properties’ asking for input from stakeholders on how the new rules will be implemented. A summary can be found here. The NLA have produced a summary which can be found below.
If contracts were exchanged after 25 November 2015 then the higher rates will apply if the purchase is completed on or after 1 April 2016. However, if contracts were exchanged on or before 25 November 2015 but not completed until on or after 1 April 2016, the higher rates will not apply.
A total of 21 questions are included in the document, asking stakeholders their opinion on issues including the rules surrounding joint purchases, refunds and exemptions.
Under the current proposals the Government will treat married couples or civil partners as a unit, whereas unmarried couples can avoid the surcharge by buying a property under each of their names.
Joint purchases are one of a number of issues raised in the paper, as well as plans for exemptions for those owning a large number of properties or buying homes in bulk.
You see a summary of the consultation in the attachment below. The five-week consultation period ends on February 1, with the final details to be revealed by the Chancellor when the Budget is announced on March 16.
The NLA have already met with the Treasury on this and are currently drafting our response. We will keep members informed.