Stamp Duty Land Tax (SDLT) and Capital Gains Tax (CGT) Update
Stamp Duty
The Government announced in its Spring Budget on 6 March 2024 that Multiple Dwellings Relief (MDR) will be abolished from 1 June 2024.
MDR is a bulk purchase relief from SDLT which applies to the purchase of 2 or more dwellings.
HMRC publishes statistics which estimate the cost of tax reliefs. In 2022-2023 the cost for MDR was 700 million pounds.
Importantly the government website states:
‘For contracts which exchanged on or before 6 March 2024, MDR will continue to apply, even where completion of the purchase takes place on or after 1 June 2024. This is subject to there being no variation of the contract after 6 March 2024.’
For more information please see the government website at the below link:-
CGT
The Government also announced in its Spring Budget that there will be a reduction in the higher rate of CGT on residential property gains from 28% to 24%. The lower rate will remain at 18%.
Private Residence Relief (PRR) will remain for disposal of main residences.
The Government website explains the objective behind this policy:
‘Cutting the 28% rate of CGT to 24% is expected to incentivise earlier disposals of second homes, buy-to-let property and other residential property where accrued gains do not fully benefit from PRR. This will generate more transactions in the property market, benefitting those looking to move home or get onto the property ladder.’
For more information please see the government website at the below link:-
The contents of this post do not constitute legal advice and are provided for general information purposes only.