Budget analysis – SDLT

Speed Read: There were three main announcements concerning SDLT in the Budget being: (1) the proposal to introduce a 5% rate for acquisitions of residential property where the consideration exceeds £1m from 6th April 2011; (2) a temporary raising of the nil rate threshold for acquisitions of residential property by 'first-time buyers' from £125,000 to £250,000 for acquisitions on or after 25th March, 2010 and before 25th March 2012; and (3) an anti-avoidance measure intended to block SDLT schemes which exploit the current anti-avoidance provisions in FA 2003 Sch 15 Part 3 to sell property into partnerships for no or nominal SDLT.