Recent changes to Stamp Duty Land Tax rate in the UK
In the previous article “What taxes are payable when buying a residential property?” it was written about the Stamp Duty Land Tax (SDLT) payable when buying residential property. It should be pointed out that there are new rules regardless to the payment of Stamp Duty Land Tax for the property purchased by non-natural persons. Just to give some details, SDLT is a tax charged on land and property transactions in the UK. The tax rate may vary according to whether the property is residential or non-residential, and whether it is a freehold or leasehold. From 20 March 2014 SDLT is charged at 15% on interests in residential dwellings costing more than 500,000 purchased by certain non-natural persons. Before this percentage was charged only after 2,000,000 threshold. However, certain trustees, property tental businesses, property developers and traders, some financial institutions and others are given an exception of paying this rate.
The following table below shows the tax rates payable for non-residential or mixed use properties. Non-resindetial property includes commercial property (shops or offices), agricultural land, forests, any other property which is not used as a dwelling or 6 or more residential properties bought in a single transaction. A mixed use property incorporates both residential and non-residential elements.