Budget 2011 – SDLT: Reform of Rules for Bulk Purchases
The Chancellor has announced details of a new Stamp duty land tax (SDLT) relief which will benefit purchasers of residential property who acquire more than one dwelling. The new relief will be legislated for in Finance Bill 2011 and become effective on or after the date on which the Finance Bill receives the Royal Assent.
Where the relief is claimed, the rate of SDLT will be determined by the mean consideration for the dwellings (i.e. to pay SDLT by reference to the appropriate SDLT rate applicable to the average value and not the aggregate value).
In most cases this should result in a substantial SDLT saving in line with the Government’s intended aim of strengthening demand for and reducing a barrier to the investment in residential property. A minimum rate of 1% will continue to apply.
This measure had been included in a consultation documentation launched by the previous Labour government but the inclusion of this measure in the Budget came as a surprise to the industry.