Big backdated SDLT boost for first time buyers with shared equity
Mon 29 Oct 2018
First-time buyers who acquired shared-equity dwellings worth up to £500,000 on or after 22 November 2017 now have no SDLT to pay and may claim back any SDLT they may have already paid.
This builds a substantial extension onto the abolition of Stamp Duty Land Tax payable by first time buyers on property purchases of up to £300,000.
This proposal from the Chancellor is a welcome move to stimulate the first-time buyer market.
The government has now finalised its proposals for the introduction of a 3% surcharge for purchases of additional homes and buy-to-let properties by individuals and for any purchase of a dwelling by a company or other non-natural person. However, there is unwelcome news in that the proposed exemption for large scale investors will no longer […]
In its pursuit of stamping out tax avoidance HMRC complained to the Advertising Standards Authority (ASA) about misleading tax claims by the promoter, CDP Tax & Wealth Limited, which trades under the name Fiducia Wealth and Tax (FWT). FWT’s website advertised a tax planning scheme which it said could reduce Stamp Duty Land Tax bills […]
It was a quiet Budget on the Stamp Duty Land Tax (‘SDLT’) front with the only announcement being the welcome delay for a year of the reduction in the filing and payment window until 2018/19. The proposal to reduce the return filing and payment window from 30 days to 14 days was announced in the […]
HMRC has issued Revenue & Customs Brief 11/2020 on the VAT and SDLT implications of lease variations. This is timely in view of the renegotiations on lease terms between landlord and tenant that may be going on as a result of Covid-19. A broad summary of the guidance is given below, but to discuss these […]
From 5 April 2017 there will be a new £175,000 allowance on homes left to children and grandchildren. At the same time the Chancellor confirmed that the current nil rate band of £325,000 will be fixed until 2020/21. Both allowances can be transferred to a spouse or civil partner with the result that £1 million […]
The Government has announced proposals to halve the time allowed for filing and paying stamp duty land tax on property transactions. Currently, where a land transaction return is required to be submitted on the acquisition of a property or the granting or assignment of a lease, the purchaser or tenant has 30 days from the […]
The Government has announced proposals to extend the scope of reliefs from the higher 15% of stamp duty land tax (SDLT) and the annual tax on enveloped dwellings (ATED) to cover residential property held for the purposes of an Equity Release Scheme or Home Reversion Plan, property occupied by employees, or acquired for demolition or […]
The Government today announced plans to review rules that encourage non domiciled individuals to invest in UK businesses. Business Investment Relief (BIR) allows UK resident Non Doms to bring overseas income and capital gains to the UK, tax free but only on condition of making certain qualifying business investments. In general, a qualifying business investment […]
The Treasury consultation document, Reforms to the taxation of non-domiciles came and went briefly on 22 September and has now reappeared. Apart from changes of dates, including the deadline for responses, nothing has changed, not even the typos. Deemed domicile after residence in 15 out of the preceding 20 years The test would be of […]
The Chancellor claimed that the current rules for the taxation of non-domiciled individuals had ‘an important place’ and would not be dumped outright before announcing significant proposals to the current regime to make the UK tax system fairer. It’s difficult to argue that the proposals will not make the system fairer but it seems doubtful […]
As George Osbourne sits down and we reflect on the announcements of today, it looks like Owner Managed Businesses are in a better place. Reduction in corporation tax rates, permanent increase in Annual Investment Allowance to £200k and new allowance for the first £5k of dividends are offset by increases in dividend tax rates and […]
Despite all the media hype around Inheritance tax and thresholds, there were no NEW announcements regarding Inheritance tax or were there? There was a cryptic comment in the Budget speech regarding restricting the use of deeds of variation as if these form part of tax planning which can be considered tax avoidance. Deeds of variation can be used within two […]
In the 2015 budget, George Osborne announced a significant reduction in the lifetime allowance for pensions from £1.25 million to £1 million. The lifetime allowance is effectively the upper limit on the value of an individuals total pensions (investment values and rights to income) that an individual may reach before suffering additional tax charges when […]
The draft Clauses Released so far The draft 2016 Finance Bill clauses cover most of the stamp tax changes announced at the Autumn Statement. Unfortunately, the one area not covered is that which is, perhaps, of the widest interest, the additional surcharge of 3% for second homes. Draft legislation for this has been promised for […]
The introduction of the Personal Savings Allowance from April 2016 effectively abolishes tax on savings for 95% of taxpayers. Both basic and higher rate taxpayers will be able to benefit although higher rate taxpayers will only be able to benefit from half an allowance. The Chancellor announced in the Budget that from April 2016 basic […]
The latest help to buy initiative announced in the Budget will mean that the Government could be paying up to £3,000 towards a first-time buyer’s deposit. Everyone can have one but when is the best time to start? The new Help to Buy ISA is essentially a cash ISA into which the Government will pay […]
In the Budget the Chancellor announced that the Government will make amendments to the SEIS, EIS and VCT legislation to ensure that the UK continues to offer significant and well-targeted support for investment into small growing companies, in line with new EU rules. The new proposals are subject to state aid approval and the likely […]
The announcement that tax returns will become a thing of the past has been broadly welcomed by those who need to complete one and with a certain sense of disbelief by those who deal with HM Revenue and Customs and their online systems on a daily basis. The Government’s vision is to create a digital […]
A major change announced at today’s Autumn statement is an overhaul of the stamp duty land tax rates that apply to residential purchases. This introduces a marginal system with each SDLT rate payable only the portion of purchase price falling within each rate band, instead of the current ‘slab’ system. Set out below are the […]
Following the 2014 Budget the ATED threshold is to be reduced to: £1m (£7k charge on properties £1m to £2m) from 1 April 2015; and £500k (£3.5k charge on properties £500k to £1m) from 1 April 2016. These changes increase substantially the number of situations ATED will affect, including those where reliefs apply.
The 15% SDLT rate was extended to acquisitions of residential property worth over £500k completed on or after 20 March 2014 by non-natural persons, i.e. companies, partnerships including companies and collective investment schemes that are subject to ATED. This surprise measure will have caught many property purchasers unawares but transitional provisions will exempt contracts entered […]
As promised in the Autumn Statement, the Finance Bill will confirm that relief from stamp duty land tax (SDLT) is available to charities on their share of joint property purchased with non-charities, in line with last year’s Court of Appeal ruling in the Pollen Estates case. This will benefit charities purchasing property for charitable purposes […]
The Government has confirmed the introduction next year of relief from stamp duty land tax (SDLT) for seeding Property Authorised Investment Funds (PAIFs) and changes to the SDLT treatment of Co-ownership Authorised Contractual Schemes (CoACSs) designed to remove barriers to investments in these funds. PAIFs were introduced in 2008 to encourage collectivised investments in property. […]
The additional 3% that will be charged on second homes and residential property investments valued at £40,000 or more from 1 April 2016 (previous blog) has, as expected, been adopted by the Scottish Government. The Bill and accompanying documents can be found at: http://www.scottish.parliament.uk/parliamentarybusiness/Bills/96000.aspx Real property (land and buildings) in Scotland are not subject to Stamp […]
The progress of the additional nil-rate band for residences has been rather slow and tortuous: first the basics of Residence nil-rate band (RNRB) were set out in the Summer Budget and Finance (No.2) Act 2015 but at that time nothing was said about downsizing provisions except that there would be some. The Draft Finance Bill […]
Although not explicitly referred to by the Chancellor in his speech the government has announced that a number of changes will be made with immediate effect to improve the operation of the higher rates of Stamp Duty Land Tax (SDLT) which can apply an effective 3% surcharge to acquisitions of additional dwellings by individuals. These […]
In line with their manifesto commitment, the government will introduce a stamp duty land tax (“SDLT”) surcharge, at 2%, on non-UK residents purchasing residential property in England and Northern Ireland from 1st April 2021. Where contracts were exchanged before Budget Day 2020 transitional rules may apply to give relief from the surcharge subject to conditions. […]
The Chancellor, Rushi Sunak’s, Budget Speech was delivered confidently and focused on investment, support and the environment. However, for some sectors, the devil was in the detail and it has become evident that the reference to raising an additional £4.7bn from tax avoidance between now and 2024/25 will see those involved in the construction sector […]
Following the Supreme Court decision in Project Blue and Hannover Leasing, HMRC has updated its SDLT manual guidance on how it will apply FA 2003 s75A (see SDLTM0950). The 15 January 2020 update to the manual can be found here. In broad summary, HMRC’s approach is: Section 75A was introduced in 2006 in response to […]
This article summarises a number of recent private client and entrepreneurial business tax cases. For a further discussion of the implications of these cases for your circumstances, please get in touch with a member of the Mazars personal tax or corporate tax teams. Rebates of investment fund annual management charges by brokers are annual payments […]
From 6 April 2020, UK taxpayers who dispose of residential property, will be required to report the disposal and pay the relevant Capital Gains Tax (“CGT”) liability within 30 days from completion. How are residential property disposals reported currently? At the moment, UK taxpayers report any disposal on their Self-Assessment tax return and pay any […]
HMRC has issued new guidance on what it views as acceptable for garden and grounds accompanying a residential property and what is other land with a non-residential purpose. The new guidance is set out on HMRC manual pages SDLTM00440 to SDLTM00480. For further advice on the boundary of garden or grounds for UK SDLT purposes […]
For companies, the preparation and filing of the annual corporation tax return is usually what springs to mind when the word tax is mentioned. However, the Annual Tax on Enveloped Dwellings (‘ATED’) is often forgotten and can catch out companies that hold UK residential property. What is ATED? ATED is an annual tax that is […]
LBTT replaced stamp duty land tax (SDLT) in Scotland with effect from 1 April 2015. Whereas for SDLT, a return in respect of rent for a notifiable lease transaction is generally only required when a lease is granted or when it is extended beyond its fixed term (by agreement or operation of the law), for […]
The Chancellor announced that Stamp duty land tax (SDLT) will be abolished with immediate effect for first time buyers purchasing a home for £300,000 or less. For homes costing up to £500,000, no SDLT will be paid on the first £300,000 with 5% being paid on the excess over £300,000. First time buyers acquiring a […]
The way the new higher rate of SDLT on “additional residential properties” will operate has been outlined in a Consultation Document which details the Government’s proposals. The consultation runs until 1 February 2016 and is intended to lead to the final details of how the new rate will apply being set out in the Budget […]
Following the introduction in 2015 of a new capital gains tax regime for non-UK resident individuals who dispose of UK residential property, it is perhaps unsurprising that the Treasury published a consultation document as part of the Autumn Budget proposing new measures to tax UK immoveable property owned by non-UK residents. The new regime would […]
From April 2018, Land Transaction Tax (LTT) will replace UK Stamp Duty Land Tax (SDLT) in Wales. A draft copy of the legislation (Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Bill) has now been published. It is intended to be broadly consistent with SDLT, preserving the underlying structure and mirroring key elements such […]
Late changes to FB 2016, discussed in the Public Bill committee on 30 June, correct anomalies in the dividend tax rules as originally proposed. The effects of these late amendments are to make the new dividend rules work as one would have expected them to and largely as they were intended to. They are uncontroversial, […]
Committee Stage amendments to Finance Bill 2016 correct anomalies in the original clauses to ensure that the IHT residence nil-rate band provisions should work consistently when they come into force on 6 April 2017. The residence nil-rate band (RNRB) rules are complex but are intended to give additional IHT relief to many homeowners (there is […]
In a logical move the charging structure for non-residential property has now been brought into line with that for residential property by abolishing the slab system which applied a single rate to the entire transaction value. This brings the method in which stamp duty land tax (‘SDLT’) is applied to property transactions in England and […]
Capital Gains Tax (‘CGT’) charged on gains realised on most assets will fall by 8% to 20% (10% for basic tax payers) from 6 April 2016. Long-term investors will be able to claim investors’ relief on gains realised after three years on disposals of new shares in unlisted trading companies resulting in many only paying […]
The government made a commitment to raise the personal allowance to £12,500 and the higher rate threshold to £50,000 by the end of this parliament. The measures announced today have been billed as a step towards achieving this objective. The personal allowance for 2017/18 will be set at £11,500 and the basic rate limit will […]
There were a range of measures affecting property announced in the Chancellor’s Summer Statement. We will need to see the documents setting out precisely how these measures will work, but the most eye catching is the temporary increase to the stamp duty land tax (SDLT) nil rate threshold to £500,000 for transactions between 8 July […]
Until the introduction of the annual tax on enveloped dwellings (ATED) there were tax advantages in having high value residential properties owned by a company rather than personally. Since 6 April 2013 ATED imposes an annual “charge” of between £15,000 and £140,000 on companies and other non-individual owners of UK dwellings with a value in […]
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