Autumn Statement 2015 Reaction: Buy to Let –Stamp Duty Land Tax and Capital Gains Tax

The rate of SDLT on buy-to-let properties and second homes will be increased by three percentage points above the current levels (i.e they will be increased from 2% – 12% to 5% – 15%). The new rates will apply from 1 April 2016. They will not apply to corporates making significant investments in residential property, and the government will consult on the detail of how this exemption will work in practice. The indications are that the corporate exemption would apply to entities holding at least 15 properties.

On the sale of a residential property, a payment on account of CGT will be required to be made within 30 days of completion. This will apply from April 2019, and will not affect properties which qualify for main residence relief.