BUDGET 2024: LABOUR STRIKES CLOSER TO HOME WITH INCREASED SDLT RATE FOR ADDITIONAL PROPERTIES ETC

Back in the election manifestoes, Labour had promised to raise more stamp duty by adding another 1% on the rate for non-residents buying UK residential property.  

The surcharge for foreigners being 2%.  

This seemed perfect. A tax not only paid by ‘others’ (the best kind of tax). But it would be payable by ‘others’ located overseas. 

However, it seems that Labour has eschewed such an obvious move and decided to add this to the surcharge applied to anyone purchasing an ‘additional’ property. 

It is assumed this is a much more lucrative move. 

As per the Budget announcement, this increased rate, raised from 3% to 5% above the standard residential rates, will be paid by those who have more than one property at midnight on completion. It is also paid by all companies (regardless of whether own other properties) and by some trusts. 

This will be yet another cost of being a property investor and landlord. Of course, this is no accident, bearing in mind the attitude of the Labour party to landlords over many years and their latest comments about the ‘asset holding class’ in the UK. 

In addition, there will also increase the single rate of SDLT payable by companies and non-natural persons acquiring dwellings for more than £500,000, from 15% to 17%.  

Let’s face it, these are absolutely crazy and highly punitive rates. 

The new will apply to transactions with an effective date on or after 31 October 2024. 

The manifesto promise to raise the rate for overseas buyers seems to have disappeared into the ether. 

SDLT is a silly tax. 

It’s just got sillier.