The government is consulting until 1 February 2016 on the detail of the new SDLT surcharge of 3% above current SDLT rates on additional residential properties purchased on or after 1 April 2016.
The consultation states that the higher rates will only apply to purchases of additional residential property which complete on or after 1 April 2016. If contracts are 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.
The consultation also:
· proposes an exemption for bulk purchases of at least 15 residential properties in one transaction and seeks views on whether this exemption should be available to individual investors as well as non-natural persons;
· sets out a consideration of the circumstances in which a transaction would be subject to the higher rates, including identification of difficult cases, and the circumstances where exemption from the higher rates may be justified, and the government’s approach for how a main residence is to be defined; and
· sets out potential changes to the administration of SDLT by HMRC and the processes taxpayers will be expected to go through to ensure compliance.
In a response to a written parliamentary question on 14 December, Financial Secretary to the Treasury David Gauke had confirmed that the government would consult on its new SDLT proposals. The government says it will consider all responses before confirming the final policy design at the Budget on 16 March 2016 for legislation to enter into force on 1 April 2016. See www.bit.ly/1QXiw8o.
The government is consulting until 1 February 2016 on the detail of the new SDLT surcharge of 3% above current SDLT rates on additional residential properties purchased on or after 1 April 2016.
The consultation states that the higher rates will only apply to purchases of additional residential property which complete on or after 1 April 2016. If contracts are 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.
The consultation also:
· proposes an exemption for bulk purchases of at least 15 residential properties in one transaction and seeks views on whether this exemption should be available to individual investors as well as non-natural persons;
· sets out a consideration of the circumstances in which a transaction would be subject to the higher rates, including identification of difficult cases, and the circumstances where exemption from the higher rates may be justified, and the government’s approach for how a main residence is to be defined; and
· sets out potential changes to the administration of SDLT by HMRC and the processes taxpayers will be expected to go through to ensure compliance.
In a response to a written parliamentary question on 14 December, Financial Secretary to the Treasury David Gauke had confirmed that the government would consult on its new SDLT proposals. The government says it will consider all responses before confirming the final policy design at the Budget on 16 March 2016 for legislation to enter into force on 1 April 2016. See www.bit.ly/1QXiw8o.
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