ARTICLE · 26 SEPTEMBER 2012

Residential Property Transactions Under Scrutiny

Smith & Williamson

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The Government is introducing new measures designed to deal with the perceived avoidance of stamp duty land tax by owners of high-value homes.

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Smith & Williamson

New annual charge for high-value houses owned through companies

The Government is introducing new measures designed to deal with the perceived avoidance of stamp duty land tax by owners of high-value homes.

The Treasury has set out proposals for an annual charge for high-value residential property – residential dwellings with a value of more than £2m – owned by 'non-natural persons'. Capital gains tax (CGT) will also be extended to gains made on such property by certain non-resident, non-natural persons. The Government has indicated that the new rules – expected to take effect in April 2013 – will target perceived avoidance of stamp duty land tax (SDLT) by owners of expensive residential property and are designed to discourage the use of corporate envelopes by non-UK residents.

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