Stamp Duty Land Tax (SDLT) has been described as the tax homebuyers love to hate.
First introduced through the Finance Act 2003, it served as a tax payable on land transactions payable by the buyer. And over the last 17 years, the nature of the tax has been evolving. This has made SDLT complicated to understand for domestic and international buyers of UK property.
Prime Minister Boris Johnson has said he will reform the tax in the 2020 Spring Budget. This is scheduled for 11th March and will be delivered by Chancellor Rishi Sunak. It is not yet known whether the Chancellor will keep with the reforms his predecessor Sajid Javid was planning on implementing. However, it seems likely that SDLT will feature in the Chancellor’s speech.
In the lead-up to the 2019 General Election, the Government proposed a number of changes to SDLT. These are detailed in Market Financial Solutions latest report – Stamp Duty Land Tax: What property investors need to know. Based on what we know so far, the following changes could be made to the tax:
- A 3% SDLT surcharge on residential property purchases in England
- Its removal on property transactions valued below £500,000
- Reducing the rate payable on home valued at £1.5 million and over from 12% to 7%
UK property is a hugely popular investment asset. In recent months, domestic and international buyers have been flocking to bricks and mortar for the capital growth it offers. What’s more, the buy-to-let market ensures investors can enjoy regular rental returns. This means that any reform to SDLT must be undertaken carefully and with precision.
Supporting investments with fast finance
Whatever the outcome of the 2020 Spring Budget, Market Financial Solutions will be on hand to provide tailored bridging loans to international and domestic investors. For more information about SDLT, please download our new report. Alternatively, you can email firstname.lastname@example.org for more information about specialist finance products and competitive rates.