At the end of a highly political Autumn Statement earlier today, George Osborne pulled one rabbit from the hat which has an immediate and, for many, a positive impact for residential property buyers.
SDLT – Residential Rates
For the last ten years SDLT has been calculated using a “slab” approach so that if the consideration for the property tips over into the next band, the SDLT rate is calculated based on the total consideration. From midnight tonight the system is being reformed and SDLT will be calculated in a similar way to income tax, so that SDLT at the relevant rate only applies to the part of the price falling within each band.
According to the Government’s figures, the changes represent a tax cut of £800 million, reducing the SDLT charge for the vast majority of residential purchase