Budget Update - Increases In SDLT & Extension To ATED / CGTED Regime

Today's budget announcement contains a sting in the tail for investors in UK residential property.

The Chancellor has slapped a massive increase on Stamp Duty Land Tax (SDLT) increasing it to 15% when residential property worth £500,000 or more is purchased in the name of a company. Previously, the rate payable was 4% for residential properties worth over £500,000 and up to £1m and 5% for residential properties worth over £1m and up to £2m.

But he hasn't stopped there. The Chancellor has also extended the Annual Tax on Enveloped Dwellings (ATED) regime so that with effect from 2015 all residential properties worth more than £1m owned by companies will be subject to both ATED and Capital Gains Tax on Enveloped Dwellings (CGTED). In 2016, he will cast his net even wider and all residential properties worth more than £500,000 owned by companies will be subject to ATED and CGTED.