This site uses cookies. and this alert will appear once and then not again.

Budget Predictions - Property taxes

A recent PwC survey found that 43% of people consider the implications of stamp duty before buying a property. Despite the recent removal of the ‘slab system’, which cut stamp duty for those buying homes under £900,000, further changes could be on the cards.

Budget 2017 - Real Estate focus

There were a number of changes announced today, the most significant of which apply to non-residents investing in UK real estate. In light of the proposal to bring all income and gains of non-residents in relation to UK property within the charge to UK corporation tax, the other proposals relating to UK corporation tax will affect UK and non-UK companies alike in the future.

Reminder to file 3 yearly LBTT lease returns

As a reminder, when Land and Building Transaction Tax ("LBTT") was introduced in Scotland from 1 April 2015, one of the key differences to SDLT was the requirement to file 3 yearly lease review returns and a review return when a lease is assigned or terminated.

LBTT first time buyers relief

The Scottish Budget on 14 December 2017 announced a Land and Buildings Transaction Tax (LBTT) first time buyer relief along similar (but less generous) lines to the Stamp Duty Land Tax (SDLT) first time buyer relief announced in Autumn Budget 2017.

Changes to SDLT filing and payment requirements

Stamp Duty Land Tax (“SDLT”) is charged on transactions involving interests in land in England and Northern Ireland. Within the Draft Finance Bill 2018-19, the Government has announced changes to the compliance requirements for SDLT returns. The legislation would reduce the deadline for filing a return (and settling any SDLT liability), from 30 days to 14 days following the effective date of the transaction. The new requirements would apply to transactions with an effective date on or after 1 March 2019.

Stamp Duty Land Tax - 1% non-UK resident surcharge consultation

On 11 February 2019 HMRC and the Treasury together issued a consultation document in respect of a 1% SDLT surcharge for non-UK resident purchasers of residential land interests in England and Northern Ireland.

The proposal was first announced by the Prime Minister at the Conservative party conference in September 2018, and reconfirmed in the October 2018 Budget.

The consultation period will run until 6 May 2019 at which point the UK Government will consider the responses and decide whether to go ahead with the 1% surcharge on foreign buyers. The 1% surcharge is, therefore, not current law and does not yet apply.

Update on changes to SDLT filing requirements

For transactions with an effective date on or after 1 March 2019, there will be a reduction in the deadline for purchasers to file an SDLT return, and settle any SDLT liability arising. The deadline will reduce from 30 days to 14 days from the effective date of the transaction.