With the stated aim of ensuring the "fair taxation of residential property transactions", the UK Government announced in the March 2012 Budget, three measures targeting at discouraging the purchase of high value UK residential property through companies and other "non-natural persons" (NNPs).
The first of these measures was an immediate introduction of a new 15% rate of Stamp Duty Land Tax (SDLT) on the purchase of any UK residential property worth more than £2 million by an NNP. The two other proposed measures did not take immediate effect but were subject to a period of consultation:
The consultation period for these measures has ended and draft legislation to bring them into effect has now been published. Michael Parkinson and Jenny Bird, specialist trust and tax lawyers in our Private Client team offer advice on these new measures and future purchases.
New tax regime for high value UK residential property - Feb 2013.pdf