Taxation of high value UK residential property

  • October 09, 2012
  • By Hunters Law

The Government has announced that it will publish draft clauses for the Finance Bill 2013 by 11th December 2012. Included in these will be draft provisions giving effect to the Chancellor’s proposals on the taxation of high value UK residential property.

In his 2012 Budget, the Chancellor announced an immediate increase in SDLT on residential property worth over £2 million, together with a consultation on the introduction of an Annual Property Tax and an extension to CGT.

It was suggested that the Annual Property Tax would apply to residential property worth over £2 million and owned by ‘non-natural’ persons, whether UK or non-UK resident. Properties would be banded by value and charged accordingly on an annual basis.

The extension to CGT would also apply to UK residential property worth over £2 million and owned by non-natural persons who are non-UK resident. There would be a charge on any gains realized by the disposal of such a property, and on the disposal of shares in a company where more than 50% of the value of the company is attributable to the value of the UK residential property.

The consultation period ended on 23rd August 2012 and we now await the draft legislation in December.

Related News

Oct 19, 2022
James Letchford discusses the UK commercial property market in PropertyEU
May 12, 2022
Scott Battram outlines the legal aspects of buying a luxury property in Kizzi’s Luxury Properties
Mar 30, 2022
Henry Hood and James Vernor-Miles share their advice with unmarried couples co-owning (or buying) property together in Tatler’s Address Book
Nov 26, 2021
Jessica Harris discusses the government failing to provide business rates relief for those outside of the retail, leisure and hospitality sectors in Property Investor News
Oct 28, 2021
Jessica Harris discusses how the Autumn Budget fails to live up to expectations on business rates relief in Lawyer Monthly
Oct 04, 2021
James Letchford promoted to the firm’s partnership
Aug 27, 2021
James Letchford discusses his top tips for commercial tenants in Property Week
Aug 03, 2021
James Letchford discusses simplifying VAT on property
Jul 23, 2021
James Letchford discusses commercial properties and boundaries
Jul 13, 2021
James Letchford discusses the extension of certain temporary protections for commercial tenants

© Hunters Law LLP 2023 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)