3% Stamp Duty surcharge changes missed in the BudgetMake Text Bigger
International law firm Mishcon de Reya published a summary of budget changes to the 3% surcharge on Stamp Duty that were missed out in Philip Hammond’s budget address to Parliament.
With immediate effect the Finance Bill 2017 to 18 will legislate to improve how the 3% SDLT surcharge for additional residential properties works by giving relief on this additional charge when:
- An individual buys property from their spouse
- A purchaser adds to their interest in their existing main residence
- A court order issued on a divorce or dissolution of a civil partnership prevents someone from disposing of their interest in a main residence
- A person buys a property in a child’s name or on a child’s behalf, where they are doing so in their capacity as the deputy of that child
The Stamp Duty filing and payment timescale will also be decreased from 30 days to only being allowed a maximum of 14 days for land transactions after the 1/3/2019. However, there will be changes to the SDLT return to make it easier to comply with the 14 day limit.
Mishcon de Reya said the relief on when a purchaser adds to their interest in their existing main residence “is particularly helpful as it gives relief from the surcharge for the price paid for lease extensions on a main residence, which was one of the more unfair applications of the rules. However, the draft legislation shows that this relief will be subject to certain carve outs, including where the existing interest is a lease with a remaining term of less than 21 years.”
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