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Following changes to the stamp duty land tax (SDLT) for non-residential property purchases announced in the Budget this year, further guidance has been issued by HMRC.

The main changes are as follows:

  • the SDLT on non-residential freehold and leasehold transactions on or after 17 March 2016 will be payable only on the amount of the price within each band (rather than at one rate on the full value as previously)
  • SDLT on the rental element of non-residential leasehold transactions was previously taxed on the amount of the price which fell into each band.  A new 2% rate applies to transactions with a net present value (NPV) over £5 million from 17 March 2016
  • the ‘£1,000 rule’ will no longer apply from 17 March 2016 onwards.

If you’d like to read the guidance please click here.

There are also some changes to SDLT on the purchase of additional residential properties, including buy-to-let and second homes, from 1 April 2016.  This was originally announced in last year’s Autumn Statement and HMRC has now also published further guidance on this.

The rates of SLDT will be increased to 3% above the standard rate, although this will not apply to property purchases under £40,000 or purchases of caravans, mobile homes or houseboats.  If you’d like to read more please click here or alternatively don’t hesitate to contact Michael Burgess on 01782 279615 if you have any questions.