March 16th 2016 – Budget Changes

Today the government has announced the changes for SDLT.  Please review our blog below and if you have any questions,  dont hesitate to call us on 01332 292204.  We are always happy to help.

The higher rates OF SDLT will apply to purchases of additional residential properties on and after 1 April 2016. The government has carefully considered the responses and views expressed and is announcing the following changes from the policy design originally proposed:

  • To help those moving in difficult circumstances, purchasers will have 36 months rather than 18 months to claim a refund of the higher rates ‎if they buy a new main residence before disposing of their previous main residenceThe refund can be claimed once the previous main residence has been disposed of.
  • Purchasers will also have 36 months between selling a main residence and replacing it with another without having to pay the higher rates‎.
  • The 36 month period will commence from 25 November 2015 for purchasers who disposed of their previous main residence prior to Autumn Statement.
  • The government has decided to apply the higher rates equally to all purchasers without an exemption for significant investors.
  • When applying the higher rates, a small share (50% or less) in a property which has been inherited within the 36 months prior to a transaction will not be considered as an additional property.
  • The government will consider married couples who are separated and living in circumstances that are likely to become permanent, as divorced for the purposes of applying the higher rates.

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