This Spring, the Chancellor, George Osboune, focused on what has been seen a wealthy individuals avoiding their duty to pay tax through their use of schemes and corporate vehicles and then selling those shares free of SDLT.
Here are some of the key points with further legislation expected;
- 7% SDLT on residential acquisition after 21/03/2012 where the chargeable consideration is above £2m.
- 15% SDLT on residential acquisitions where the chargeable consideration is above £2m by a ‘non-natural person’ (Corporations, partnerships, collective investment groups).
- Annual charges for companies holding residential property valued more than £2m (rate TBC).
- Capital gains charges on disposal of residential property by non-resident companies.
The intention is to bring these rules into operation from April 2013 and details are still awaited. RPS recommends that you take expert advice to identify any exposure or opportunities that may be available. It is possible that there could be a high number of transactions on the months leading up to these changes and planning well in advance may help in avoiding having to accept lower values.
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