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Stamp Duty Land Tax (SDLT) Changes

More Group
02 April, 2019


During the 2018 UK Budget, it was discussed that there would be a decision made on the increase in SDLT for non-UK residents who are interested in purchasing residential property in England and Northern Ireland. The HMRC and Treasury have issued a 42 page (12 weeks long) consultation that will look into how a 1% increase in SDLT would be effective. This 1% increase in SDLT not only applies to non-UK residents but also to non-natural persons which include companies, trusts and partnerships.

The consultation contains all the details of the increased charge including how non-residents are defined and how this charge applies to existing companies. The final details of the increase will be released to the general public once the consultation has concluded and it has been decided how much the charge is expected to rise.

The increase in SDLT is being made mainly to help control house price inflation that happened due to the purchasing of property by non-UK residents which resulted in the rise of property prices for UK residents.

At present, the government has proposed to treat individuals who have spent lesser than 183 days in the UK (at the 12-month mark from the date of the property transaction) as non-UK residents. Non-UK resident companies that purchase residential property are liable to pay the additional 1% surcharge on top of the current flat 15% SDLT.

Certain individuals such as a crown employee working abroad and military personnel are exempt from the 1% surcharge.

Here is a breakdown of the current and proposed SDLT rates for non-UK residents that the government has proposed.

Value (in £)

Current Standard Rate

Proposed Standard Rate

Current Higher Rate

Proposed Higher Rate

0 - 125,000

0%

1%

3%

4%

125,000 - 250,000

2%

3%

5%

6%

250,000 - 925,000

5%

6%

8%

9%

925,000 - 1.5m

10%

11%

13%

14%

1.5m +

12%

13%

15%

16%

Value (in £)

Current First-time buyer relief rate

Proposed First-time buyer relief rate

0 - 300,000

0%

1%

300,000 - 500,000

5%

6%

In addition to the 1% surcharge, the publication of the draft of the Finance Bill 2018-19 announced that the current 30-day window to file an SDLT return and pay taxes would reduce to 14 days from 1st March 2019.

This new deadline applies to the following:

  • All land transactions that have an 'effective date' on or after 1st March 2019
  • All land transactions that have an 'effective date' before 1st March 2019 but were not notifiable to HMRC until on or after 1st March 2019

This reduction in deadline only applies to property transactions in England and Northern Ireland. The deadline for filing tax returns and paying tax will remain at 30 days for property transactions in Scotland and Wales.

It is important to make a note of all the changes that will occur regarding SDLT and to recognise how these changes will affect us in order to adapt to these new circumstances easily.

How More Group can help

The guidelines surrounding Stamp Duty Land Tax planning can be complicated, but we are here to help. At More Group, it is our job to focus on SDLT procedures. We have a team of experts who can facilitate all your SDLT planning needs, including:

  • Completing SDLT returns
  • Claiming available reliefs
  • Advising you on SDLT payments
  • Negotiating with HMRC

 

More Group is proud of the service we provide, which is personalised, efficient, reliable and professional. If you need help getting your Stamp Duty Land Tax  planning in order, please contact us to book a free consultation:

Telephone: +44 (0)20 7648 8950
Email: mail@moregroup.com
Web: www.moregroup.com




 


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