Yesterday saw the first Budget of the new Labour government. Amongst various other announcements, the Chancellor revealed that the rate of Stamp Duty Land Tax (SDLT) payable on the acquisition of additional dwellings by individuals, or the purchase of dwellings by companies is to increase. These transactions will now be subject to an additional rate of 5% above the standard residential rates of SDLT, increasing from the previous surcharge of 3%.
In addition, the single rate of SDLT payable by certain companies and other non-natural persons purchasing dwellings over £500,000, is to increase from 15% to 17%.
These changes to the SDLT rate will apply to transactions with an effective date on or after 31st October 2024. Typically, the effective date of a transaction is the point at which the land transaction is completed, this is unless there has been substantial performance of the contract before the date of actual completion. This may occur if any payments of rent or consideration are made, or if the buyer takes possession of the whole, or substantially the whole, property being sold.
For more information and guidance on all aspects of residential development, please contact the Development & Housebuilding Team at Boyes Turner on [email protected].
