Overview

From 6 April 2011 the rate of stamp duty land tax applicable to acquisitions of residential property will increase to 5% where the purchase price (together with other chargeable consideration) exceeds £1,000,000.

The new rate will only apply if the land that is being acquired consists entirely of residential property. Where the land is, in part, residential and, in part, non-residential, the new rate will not apply at all. The key issue in determining whether or not land is residential property is the character of the land rather than how it will be used by the purchaser.

Wragge & Co provides a detailed overview.

To read more click ‘view briefing’.