Proposed New Stamp Duty Rules
Tweet |
Wed 13 Jan 2016
With the consultation set to close on 1st February, the changes are likely to come into force in April2016 and will give more support to first-time buyers. Some of the important changes to consider are:
- Married Couples
In line with other tax rules for private residences, the government will treat married couples and civil partners as one unit – relief on one residence between them. - Buying With Children
If a parent who already owns a home joins their children on the deeds of a new property then the purchase will be subject to the higher rate of tax. Where the parent provides money towards a deposit the 3% levy will not apply. Similarly, acting as a guarantor will not attract the surcharge. - Changes to the Stamp Duty Return Form
Buyers are required to take responsibility for the accuracy of the return form and guidance will be provided by HMRC. Obviously, filing in the form incorrectly could lead to charges of tax evasion. The government is considering how it can support conveyancers during the process. - Large & Corporate Investors
There may be exemptions for those making significant investments in residential housing – whether that is for investors that have a large portfolio already or those who execute bulk transactions is as yet unclear; however it has been proposed that where six or more residential properties are bought together, the purchaser may chose either residential or non-residential rates of Stamp Duty with Multiple Dwellings Relief applied. - Tax Avoidance
The government has stated that it will look closely at potential loop-holes to limit the potential for tax avoidance opportunities – so, for example, an individual could purchase a property through a company specifically set up to hold just that one property and avoid the higher rates of Stamp Duty. Consequently it is likely that the first purchases made by a company or collective investment vehicles will be subject to the 3% surcharge to guard against tax avoidance risks. - Land Should Be Exempt
Land without housing on it has always been considered “non-residential”, even if planning permission for residential housing is in the works. Since the government isn’t planning to change the definitions of residential and non-residential property in any way this means that land should be unaffected. - Short Term Additional Property Ownership
It looks as though there will be a maximum period where you can transition from one main residence to another of about 18-months where it is possible to only pay the lower rate, however it seems that you will have to pay the surcharge and then apply via a refund mechanism. - Exchanging Contracts
The deadline is the 1st of April – complete your additional property purchase after and you will be paying the 3% levy. However, if you exchanged contracts before the 25th November 2015 but are completing on or after the 1st April, then you will be exempt.
The final policy design will be announced at the Budget on the 16th March 2016. Relevant parties have until the 1st February to respond to the consultation.
News Archive
March 2022
5 Ways To Spruce Your Home For Spring
December 2021
Brown & Cockerill Named Best Agent In The West Midlands Region By Relocation Agent Network
October 2021
Maintaining you rental property this winter
Rents rise at fastest rate for 13 years
Why Autumn is a good time to make the move
A guide for first time tenants
September 2021
Why You Should Rent Through A Reputable Agent
Top tips on being ready to sell your property
August 2021
Lettings market records its strongest month
How has the property market been impacted after the stamp duty changes?
July 2021
Common mistakes when selling your home and how to avoid them
Top tips on increasing the rental value of your property
Property price predictions for the rest of 2021
June 2021
Choosing the right lettings agents
A beginner's guide to selling a property
A guide on buy-to-let mortgages
Everything you need to know about the Stamp Duty changes
May 2021
Tips for renting out a property
How to maximise your house value in the current climate
Restaurants to Visit in Rugby, Warwickshire
April 2021
Five top tips for getting your garden spring-ready ...
What The Government’s 95% Mortgage Scheme Means For Buyers
January 2021
“What should you spend time and money on when improving your property?”
November 2019
National Estate Agent Conference
April 2019
What is the difference between Outline and Full Planning Permission?
February 2019
Best Ways To Increase Your Rental Property's Energy Efficiency
January 2019
Shared Ownership - What is it?
October 2018
Taxes Payable by Landlords & Investors - A Guide
August 2018
We win GOLD for the 3rd year running.
May 2018
The Facts - Energy Performance Certificate (EPC)
February 2018
Relocation Experts Recognised at Brown & Cockerill Estate Agents
November 2017
Chancellor abolishes Stamp Duty for First-Time Buyers in England and Wales in his Budget
The Team Attends National Estate Agency Conference and Exhibition.
September 2017
Brown & Cockerill win Silver at National British Property Awards
It's Official - We are the Best in Rugby!
July 2017
The Pros and Cons of 'Online' Estate Agents
Top tips for reducing condensation
May 2017
The importance of your credit rating when applying for a mortgage
Thinking about selling but worried about the length of your lease?
April 2017
Tenant Referencing - what you need to consider
March 2017
How to Spot and Tackle Japanese Knotweed
February 2017
10 things to do before applying for a mortgage
HOUSING WHITE PAPER: The Key Points
January 2017
Woodworm Treatment - The ins and outs that you need to know
December 2016
Selling Your House? Don't Wait for the New Year!
August 2016
Brown & Cockerill Offer Clients a Relocation Agent Specialist
July 2016
Brown & Cockerill win GOLD for Best Estate Agent in RUGBY!
June 2016
Lettings: A Guide to Deposit Protection Schemes
Property Jargon Buster - a glossary of terms
May 2016
Thinking of Buying a Second Home? a guide to stamp duty changes.
April 2016
Rents Rising Across Most of the UK
March 2016
Brown & Cockerill Help Home-Movers to Celebrate!
February 2016
FEBRUARY is here which means it is the month of LOVE
This Year We Are Celebrating Our 20th Anniversary !
January 2016
Do your tenants have the Right to Rent?
December 2015
Buying or selling a property with asbestos?
Gazundering: A guide to what it means and how to avoid it!
November 2015
The Team Attends National Estate Agency Conference
View older stories >