Further detail has emerged from HMRC on the new Stamp Duty Land Tax ( SDLT ) 3 % rate for buy to lets and second homes announced last week in the Autumn Statement.
SDLT is normally payable on completion or, if earlier, on substantial performance and it has been confirmed that higher rates will apply to all contracts entered into on or after 26 November 2015 where completion takes place on or after 1 April 2016.
Transitional rules will also apply and property investors should look carefully at the timing of any transaction and take appropriate advice.
The Government will shortly be consulting on more of the policy detail and to clarify some of the terms used earlier. This will include the definition of “main residence” and “additional property”, the interaction of the higher rates with the relief of purchasers of multiple dwellings and defining corporates and funds which make significant investment in residential property.
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