We’ve summarised key developments in the Spring Budget impacting property practitioners.
Key changes include:
- funding for HM Land Registry’s (HMLR) digitisation project
- stamp duty land tax (SDLT)
- annual tax on enveloped dwellings (ATED).
Read the overview of tax legislation and rates (OOTLAR)
Land Registry digitisation
The government has committed £42m of funding to allow HMLR to continue its project to digitise land registration in England and Wales and enable further innovation in the property market (see paragraph 2.13 of the Budget).
Non-resident SDLT surcharge on purchases of residential property
The government will introduce new rates of SDLT for purchases of residential property by non-UK residents made from 1 April 2021.
The surcharge will apply at a rate of 2% above the residential rates (including the higher rates for additional dwellings and companies, the 15% rate, and the first-time buyers’ rates).
The government will consult on draft legislation over the summer and introduce the change in the 2020/21 Finance Bill.
Find out more at:
- paragraph 2.35 of the Budget
- paragraph 2.44 of the OOTLAR.
We expect a consultation responses document to be published within the next few weeks, setting out the detail of the government’s decisions.
Annual tax on enveloped dwellings
Relief for housing co-operatives: 15% rate of SDLT
The government will introduce new reliefs from ATED and the 15% rate of SDLT for housing co-operatives.
The government will consult on draft legislation over the summer and introduce the change in the 2020/21 Finance Bill.
Find out more at:
- paragraph 2.35 of the Budget
- paragraph 2.45 of the OOTLAR.
Annual chargeable amounts for 2020/21
The ATED charges will increase by inflation for the 2020/21 chargeable period, which begins on 1 April 2020.
Find out more at Table 2 of the OOTLAR (page 23).
The table below shows:
- annual chargeable amounts within each property band for 2019 to 2020
- increased amounts for the 2020 to 2021 chargeable period.
| Taxable value of the property | Current charges for the 2019/20 period | Increased charges for the 2020/21 chargeable period |
|---|---|---|
| £500,001 to £1,000,000 | £3,650 | £3,700 |
| £1,000,001 to £2,000,000 | £7,400 | £7,500 |
| £2,000,001 to £5,000,000 | £24,800 | £25,200 |
| £5,000,001 to £10,000,000 | £57,900 | £58,850 |
| £10,000,001 to £20,000,000 | £116,100 | £118,050 |
| £20,000,001 and over | £232,350 | £236,250 |
