SDLT revisions on commercial properties

SDLT revisions on commercial properties

Stamp Duty Land Tax (SDLT) revisions introduced for commercial properties.

• 1% increase applied to the highest rate of SDLT on commercial property.
• This alongside duty on certain leases forecasted to raise approximately £2.5bn over the next five years.

This has heavily affected the real estate market and affect existing property values.

• Large companies now face 2% charge, where the net present value of rents are greater than £2m.
• 100% increase on the existing charge.
• Resulting in shorter leases on business properties.

Disappointing news for ‘Large Scale Investors’.

• The additional 3% rate for buy-to-let investors has not been exempted as initially expected.
• Large scale purchases now likely to be taxed at the revised commercial rate of 5%.
• Therefore, may be less attractive to institutional investors.

Contact Salhan Accountants for further information.