Further details published on the Budget 2012 changes for residential property

14-Jun-2012  |  Real Estate, Tax


Following on from its Budget 2012 announcements, HM Treasury recently published a consultation document addressing "the use of corporate and other envelopes to buy high value residential property". The consultation concerns proposals for:

  • an annual charge on residential properties valued over £2 million owned by certain “non-natural” persons (broadly companies, partnerships including companies and collective investment schemes); and
  •  the extension of capital gains tax (CGT) to the disposal by certain non-resident non-natural persons of residential property valued over £2 million, interests in such property, or the envelopes in which they are held.

These proposals are expressed to accompany the new 15% stamp duty land tax (SDLT) liability on acquisitions of residential properties valued at over £2 million by non-natural persons, which took effect from 21 March this year. The consultation document implies, however, that responses may impact the form that the 15% legislation (which has not yet received Royal Assent) ultimately takes, as the issues involved with all three proposals are inherently linked.

Read an overview of each of the proposals

Lawyers Robert Young, Peter Jackson, Michelle Williamson