Wed 25 Nov 2015
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 effective date of the transaction to file the return and pay any tax due.
The Government has announced it will open a consultation next year on proposals to change the SDLT filing and payment process in 2017-2018, including a reduction in the filing and payment window from 30 days to 14 days after the effective date of the transaction. Legislation is expected to be introduced in the Finance Bill 2017.
The Government forecasts that advancing the payment date will result in an additional £110 million of tax revenue in the year of change. However, the tighter deadline will add further administrative burdens, especially for transactions involving large portfolios of properties subject to existing occupational leases, and it is therefore hoped that the consultation will also address ways of simplifying and streamlining the filing process.
For more information contact James Summers
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 […]
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 […]
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 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 […]
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.
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 […]
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 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 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 […]
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 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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
This website uses cookies.
Some of these cookies are necessary, while others help us analyse our traffic, serve advertising and deliver customised experiences for you.
This website cannot function properly without these cookies.
Analytical cookies help us enhance our website by collecting information on its usage.
We use marketing cookies to increase the relevancy of our advertising campaigns.
Comments