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Autumn Budget 2018: Property Tax Changes

SDLT and CGT are both affected ...

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The Chancellor announced his Autumn Budget 2018 on Monday and I thought I'd take a look at some of the property tax changes that will soon come into effect ...

A number of changes to property tax was announced in the Autumn Budget 2018!

A number of changes to property tax was announced in the Autumn Budget 2018!

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First of all, the rates of Stamp Duty Land Tax (SDLT) remain unchanged for properties in England, Wales and Northern Ireland.

The higher rate of SDLT is payable by individuals purchasing additional residential properties and this also applies to those who purchase a new home before selling their old one. However, minor amendments are proposed to the time limit where individuals can reclaim additional SDLT after selling their old home within three years of purchasing a new one.

These measures now allow a claim for repayment of stamp duty land tax by the later of:

  • 12 months from selling the old home

  • a year from the filing date for the stamp duty land tax return for the new home

Relief for first-time buyers will be extended to some shared-ownership properties whether or not they elect to pay SDLT on the market value of the whole property when they purchase their first share.

This can now be applied retrospectively from 22nd November 2017 so refunds may be due to those who paid SDLT after that date. Relief will be used for the first share purchased where the market value of the shared ownership property is £500,000 or less.

The Government has said it will publish a consultation in January 2019 on an SDLT surcharge of 1% for non-UK residents buying residential property in England, Wales or Northern Ireland.

"Some other significant changes are being consulted on which can affect Capital Gainst Tax relief!"

When an individual disposes of a property that has been their main residence and has been rented out. As of April 2020, letting relief is only available where the owner of the property is in a shared occupancy with the tenant. This should massively reduce the number who claim this valuable relief.

As announced during Autumn Budget 2017, the Government is to introduce a requirement for UK resident taxpayers to make a payment on account of CGT following the completion of a residential property disposal.

The new legislation will also replace and extend the existing reporting and payment on account rules for non-UK residents. The Government consulting on these changes, which should not affect individuals who dispose of a property that has been their principal residence throughout the whole period of ownership.

As announced during Budget 2017, from 6 April 2019, all non-UK resident persons disposing of UK immovable property will be liable to CGT on gains arising from interests in any type of UK land. This extends the current rules, which only apply to UK residential property.

In addition, all non-UK resident persons disposing of shareholdings in an entity that derives 75% or more of its gross asset value from UK land shall be taxed on any gains arising.

"Would you like to know more?"

If you'd like to find out more about the property tax changes announced in the Autumn Budget 2018, do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.

Until next time ...


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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.