Budget 2012, new rates of SDLT for residential property transactions

7% SDLT

In the Budget on 21 March 2012 the Chancellor announced a new 7 per cent rate of Stamp Duty Land Tax (SDLT) for residential property transactions where the chargeable consideration exceeds £2 million. The new rate applies to transactions where the effective date is on or after 22 March 2012, subject to transitional provisions for pre-existing contracts.

15% SDLT

Additionally, the Chancellor announced a new higher 15 per cent rate of SDLT for residential property transactions by certain persons (broadly companies, collective investment schemes and partnerships with a member who is a company or a collective investment scheme) where the chargeable consideration exceeds £2 million. The new rate applies to transactions where the effective date is on or after 21 March 2012, subject to transitional provisions for pre-existing contracts. There are also two exclusions from the higher charge, firstly for companies acting in its capacity as trustee of a settlement and for bona fide property developers who meet the qualifying conditions.
Please note that the new 7 per cent rate is not currently reflected in the online SDLT calculators or the online land transaction return. These will be updated to reflect the new rate as soon as possible.

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