- Threshold for residential property
increased
The Stamp Duty Land Tax (SDLT) threshold for residential transactions
was increased to £120,000 (from £60,000). This change will
apply to all residential transactions which complete (or have an effective
date) on or after Thursday 17 March 2005
- Commercial Disadvantaged
Areas Relief abolished
Disadvantaged areas relief will not be available for non-residential
land transactions (which includes the transfer of freehold and the
grant, assignment or assignation of a lease) where completion (or effective
date) is on or after Thursday 17 March 2005).
There is, however, transitional relief where contracts are entered
into on or before 16 March 2005 as these will still be eligible to claim
relief, provided that there is no variation or assignment of the contract
or sub-sale of the property and that the transaction is not the exercise
of an option or right of pre-emption.
The rules relating to disadvantaged areas relief for residential property
are unaffected.
- Disclosure Rules
The disclosure of tax schemes regime has been extended
to cover schemes and arrangements intended to avoid SDLT on commercial property
transactions on or after 1 July 2005 where a main benefit is an SDLT advantage
and where the property is not residential and has a value of at least £5
million.
- Anti-avoidance
A number of anti-avoidance measures have been announced
in relation to SDLT covering for example arrangements that utilise group
relief. The full list of measures is set out in Budget Note PN 36 and will
apply to transactions with an effective date of Thursday 17 March or later.
Click here to
read Budget Note PN 36.
This edition of “the law made plain” is written to provide you
with general information. It is recommended that you seek specific professional
advice before taking any action.
© Copyright plainlaw 2005
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