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.
