Stamp duty land tax (SDLT)
The basis of calculating SDLT on the purchase of a residential home has been structurally changed with effect for purchases on or after 4 December 2014. SDLT will be charged only on the portion of the purchase price within each band.
SDLT rates from 4 December 2014
Purchase price of property (£) New rates paid on the part of the property price within each tax band
1,500,001 and over 12%
If you exchanged contracts - or concluded missives in Scotland - before 4 December 2014 but complete on or after that date there is an option to be charged under either the old or new rules.
The new SDLT rates and transitional rules will apply to residential property transactions in Scotland until the land and buildings transaction tax replaces SDLT in Scotland from 1 April 2015.
Other SDLT measures
Other changes to stamp duty land tax are to be made in respect of:
- the treatment of shared ownership properties
- the application of SDLT on certain authorised property funds.
Annual charge on Enveloped Dwellings (ATED)
The annual charge will increase by 50% above inflation for residential properties worth more than £2 million for the chargeable period 1 April 2015 to 31 March 2016.
The charge on residential properties owned through a company depends on the value of the property in question.
Property value Annual chargeable amount 2015/16
More than £2 million but not more than £5 million £23,350
More than £5 million but not more than £10 million £54,450
More than £10 million but not more than £20 million £109,050
More than £20 million £218,200