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Property empire spoiler

10 May 2016 / Camilla Neil Martin
Issue: 4549 / Categories: Comment & Analysis

The surcharges that operate in the UK applying to additional home purchases.


  • Mitigating the additional property purchases surcharge when replacing the old main residence.
  • Spouses and civil partners are treated as a single economic unit.
  • Property purchases by partnerships are considered to be bought by the individual partners.
  • The non-Scottish legislation is to be amended to exclude properties with self-contained annexes.

The new surcharges on residential property purchases came into force on 1 April 2016. Where applicable the stamp duty land tax (SDLT) ‘higher rates transaction’ charge (in England Wales and Northern Ireland) and the land and buildings transaction tax (LBTT) ‘additional dwelling supplement’ (in Scotland) add an extra 3% slab tax to residential property purchased for £40 000 or more.

The final SDLT surcharge has some significant differences from its Scottish equivalent that overall makes it kinder for those replacing their home in...

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