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Higher Rate of SDLT Amendments

On 1 April 2016, the Government introduced the new higher rate of stamp duty applicable to the purchase of additional residential properties.

The Government announced on the 28 June 2016 that they would be making amendments to the Finance Bill 2016 relating to the new higher rate of stamp duty.

One of the proposed amendments is to exclude annexes from the higher rate of SDLT on additional residential Property.

The Government has proposed to insert an additional condition into the requirements for a purchase by an individual for two or more dwellings to constitute a higher rate transaction, providing that at least two of the dwellings must not be subsidiary to another of the purchased dwellings.

A building will be considered as subsidiary if it is within the same grounds, or within the same building as another of the purchased dwellings and it must constitute for less than one third of the purchase price attributable to those dwellings.

These amendments are considered to have taken effect from the 1 April 2016.

Please see the link to the amendments made by the Government:  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/532585/Clause_117_-_Granny_Annexes_EN.pdf

 

For more information relating to higher rates of stamp duty please contact Nicole Roberts on 01643707777 or nicole.roberts@maitlandwalker.com