SDLT And Other Property Tax Changes Announced

Following the Chancellor's Autumn Statement of 5 December 2012, HMRC has published the draft Finance Bill 2013 and other tax updates and guidance, with further draft legislation due to be published in early 2013.

Of particular significance to those involved with real estate are the following:

Non-natural persons: annual charge for high value residential properties

It has been confirmed that an annual residential property tax will be introduced for certain non-natural persons that own interests in UK residential properties valued at more than £2 million. The tax will come into effect on 1 April 2013 and annual returns and payments will be required. Returns and payment will usually be due on 30 April in each year but, for the first year of the tax, returns will be due on 1 October 2013 with payment due by 31 October 2013. There are a number of reliefs available if the property is being, or is to be, used for a genuine commercial property rental or trading business; or if it is run as a...