<<

Stamp Revamp: What You Need to Know

December 4, 2014

Describing the Stamp Duty Land (SDLT) as “one of our worst-designed and most damaging of all ,” Chancellor George Osborne yesterday abolished the “single slab rate” SDLT regime and replaced it with a new “marginal rates” system. Like , the rates of the new system will apply only to the part of the property price that falls within that band. In his Autumn Statement, Chancellor Osborne described SDLT as a “badly-designed tax on aspiration” and said it was time for it to be “fundamentally” changed. Consequently, SDLT has been restructured and will take effect at midnight on 3 December 2014. The changes apply to all property transactions which complete on or after 4 December 2014. If an exchange took place before 4 December and the contract is completed after that date, you can elect which regime you want to use. Please see the draft explanatory notes prepared by HM Revenue & regarding the Stamp Duty and Land Tax Bill – specifically section 12 − which gives the new rates. SDLT is now staggered in various bands. As an illustration, a client buying a £2 million property would pay £53,750 more in SDLT than they currently would pay (please see below for a graph which compares the rules before and after 4 December).

To see how you may be affected, you can input your information into a calculator provided by HMRC. Should you have any queries about these changes, please do not hesitate to contact the real estate team at McGuireWoods London LLP.

The McGuireWoods website provides information of general interest to the public. The website does not offer legal advice about specific situations or problems. You should consult a McGuireWoods lawyer if you have legal issues requiring attention. Nothing on this site creates an express or implied contract. McGuireWoods does not intend to create an attorney-client relationship by inviting you to contact us. Unless and until we and you agree that we will represent you, we will not have any duties to you, including any duty to keep what you send us confidential or any duty to protect your interests. This means that nothing you send us will be kept confidential, unless we mutually agree that we will keep it confidential. Past legal successes described on this website are not indicators of future results. The outcome of particular legal matters is dependent upon the facts and law applicable to the matters.