Stamp Duty Land Tax consultation launched

Article Posted -
13 Jan 2016

UPDATE: 05.02.16

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.

 

Comments

Submitted by 5555 on 27 January 2016 - 11:48am

What are you doing to fight the proposal that landlords with more than 15 properties Will be exempt?
This is amazingly unfair and a real attack on small landlords who are just trying to provide a reasonable pension for themselves.

Join the NLA

The NLA is the UK's leading association providing support for private residential landlords, serving over 40,000 members nationwide. New landlords join the NLA for advice, information and guidance and to keep up-to-date with fast changing laws and regulations.

Join today and receive instant access to a wide range of key landlord services, award-winning resources and exclusive supplier discounts.

Become a member