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TODAY'S OTHER NEWS

Stamp duty surcharge: Treasury goes public on multiple dwelling 'loophole'

Unlikely as it seems, the Treasury has tipped-off the 909 individuals and organisations that responded to formal consultation over the stamp duty surcharge about how they can offset some of the duty on multiple property purchases. 

The offset possibilities apply only to those purchasing six or more ‘additional homes’ - so most likely to be large-scale or institutional buy to let investors. 

An email from the Treasury to those who responded to its recent consultation reminds them that although the surcharge - coming into effect next week, and now to apply to all additional home purchases whether by individuals or companies - there is also the little-known Multiple Dwelling Relief, already on the statute books.

“The Government … notes the existing flexibilities within the SDLT system available to significant investors in the property market, including multiple dwellings relief and the ability to pay the non-residential rates when purchasing six or more properties in the same transaction. Both of these flexibilities will remain” reads the Treasury’s email. 

There is a lengthy HMRC definition of the relief, plus examples, here. A more detailed guidance note - updated after last week’s Budget - is available here

  • Rob Hailstone

    Loophole, tip-off or merely a reminder and clarification?

  • Rob Hailstone

    Another little snippet. On page 5 of the official HMRC Guidance Notes: Stamp Duty Land Tax: higher rates for purchases of additional residential properties, issued on the 16th March, there is a typo in clause 2.11, second bullet point. The figure of £40,0005, should read £40,000. The 5 should be a small five referring to a footnote. Not misleading if thought about, but at first glance confusing.

  • Simon Shinerock

    This is a very significant point and explains why no exemption was made for companies buying in bulk because the treasury pointed out tonGeorge that one existed already

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