UK Budget 2020 - stamp taxes

Mar 23, 2020

Three stamp tax announcements were made on Budget day.

From 1 April 2021, the Government will introduce a 2  per cent SDLT surcharge on non-UK residents purchasing residential property in England and Northern Ireland. The original consultation in this area had proposed a 1 per cent surcharge.

The Government will also introduce a relief for qualifying housing co-operatives from the Annual Tax on Enveloped Dwellings Regime and the 15 per cent flat rates of SDLT on purchases of UK residential properties over £500,000. The SDLT relief in England and Northern Ireland will take effect from the date of the 2020 Autumn Budget and the UK-wide ATED relief will apply from 1 April 2021 (with a refund available for 2020-21).

In Finance Act 2018-19, the Government introduced a targeted market value rule to prevent reduction of the tax due on share acquisitions when listed shares are transferred to a connected company. This rule is being extended to unlisted shares in Finance Bill 2020. As part of this change, the relevant legislation will also be amended to prevent a double tax charge arising on certain company reorganisations.