Stamp taxes measures announced in the budget17 March 2016
HMRC has summarised the changes to stamp taxes further to the announcement of the chancellor’s budget.
SDLT: Non-residential rates and bands
The government will introduce new rules to calculate stamp duty land tax (SDLT) on purchases of non-residential property which complete on or after 17 March 2016. This includes purchases of mixed residential and non-residential property. The relevant SDLT rate for freehold and leasehold transactions will be payable on the portion of the consideration which falls within each band as follows:
£0 to £150k 0 per cent
Over £150k and up to £250k 2 per cent
Over £250k 5 per cent
For the rental element of leasehold transactions, a new 2 per cent rate band will apply where net present value is above £5 million. Legislation will be introduced in the Finance Bill 2016. The changes will take effect from 17 March 2016 under a Provisional Collection of Taxes Act resolution. See the HMRC website for further information, including draft legislation and guidance.