The Chancellor announced in the
Autumn Statement last November that he would be introducing new rates of Stamp
Duty Land Tax (SDLT) on purchases of buy to let properties or second homes.
An additional 3% SDLT charge will apply to the purchase of residential
properties caught by the new rules and this change is expected to come into
effect for completions on or after 1 April 2016. There is an exemption from the
charges for transactions under £40,000.
In December the Scottish
government announced a Land and Buildings Transaction Tax (LBTT) supplement on
additional homes. A bill has been introduced in the Scottish Parliament to
introduce similar changes to LBTT.
The government is currently consulting
on how the rules will be implemented and in which circumstances they will
apply. It should be noted that the proposed changes will significantly increase
the SDLT and LBTT on the purchase of second homes.
The rules will also impact on
those individuals who purchase a new home where they have yet to sell their
current home. The higher SDLT and LBTT rates would be payable on the purchase
of the second property although this additional tax may be refunded if the
first property is sold within 18 months.
To read the consultation which
includes some examples of how the rules will operate use the link below.
Please also do get in touch if
you would like specific advice on how these rules will affect you and whether
or not you should buy or sell before or after April 2016.
Internet links: Consultation Scottish
Parliament
For more
information please do not hesitate to contact the team at Ward Williams
Financial Services Ltd on 01932 830664 or by email on wwfs@wardwilliams.co.uk.
No comments:
Post a Comment