George Osborne has used part of his budget announcement to confirm what many landlords feared, namely that the 3% Stamp Duty surcharge on additional properties is to go ahead next month.
The chancellor outlined that receipts would go toward helping people get on the housing ladder in the south west of England.
He also also announced reforms to Stamp Duty Land Tax on commercial property, which will kick in at midnight tonight, saying: “Just over a year ago, I reformed residential stamp duty. We moved from a distorted ‘slab’ system to a much simpler ‘slice’ system. As a result, 98 per cent of homebuyers are paying the same or less and revenues from the expensive properties have risen. The IMF have welcomed the changes and suggest we do the same for commercial properties. That is what we are going to do, and in a way that helps our small firms.
At the moment our small firms can pay just £1 more for a property and face a tax bill three times as large – that makes no sense.”
From midnight, stamp duty on commercial property will have a zero rate band on purchases up to £150,000; 2% rate on the next £100,000 and a 5% top rate above £250,000.
Click on the link below to watch the commercial stamp duty changes announced via BBC