March 19th, 2014 / Insight posted in MKS Comments

Budget 2014: Stamp duty on properties owned by companies

“Increasing the rate of SDLT to 15 per cent for residential property which is not rented to third parties or held for development, purchased in a company or other structure, is likely to deter the use of overseas companies by foreign or UK buyers,” says Martin Muirhead, Head of Property at Kingston Smith. “Personal ownership will however greatly increase their exposure to inheritance tax. Overseas buyers in particular should be aware of their increased exposure to this tax and plan accordingly.”

Lynne Rowland, personal tax partner at Kingston Smith, adds: “Another hit on properties owned via companies. The Annual Tax on Enveloped Dwellings (ATED) regime was introduced last year, impacting properties worth £2m or more and the stamp duty rate of 15% was seen to be  wholly justified as owning this type of property in this way was seen to be the preserve of wealthy non-doms. The reduction in the value of properties falling within the regime will be not be a concern to most UK homeowners owning property directly.”