Finance Bill Tracking Service 2010 | Budget 2010

BN24 STAMP DUTY LAND TAX: RATES AND THRESHOLDS

Who is likely to be affected?

1. Purchasers of residential property at over £1 million.

General description of the measure

2. Legislation in Finance Bill 2010 will introduce a higher stamp duty land tax (SDLT) rate of 5 per cent for purchases of residential property where the consideration exceeds £1 million.

Operative date

3. The new higher rate will apply to residential purchases where the effective date (normally the date of completion) is on or after 6 April 2011.

Current law and proposed revisions

4. At present the highest SDLT rate of 4 per cent applies to purchases where the consideration exceeds £500,000. A measure will be included in Finance Bill 2010 to add a new rate of 5 per cent for transactions in residential property where the consideration for the transaction exceeds £1 million.

Further advice

5. If you have any questions about this change, please contact the Stamp Taxes Helpline on 0845 603 0135. Information about Budget measures is available on the HM Revenue & Customs website at www.hmrc.gov.uk