Land and buildings
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The stamp duty threshold for
non-residential purchases of land will increase from £60,000 to
£150,000 from 1 December 2003.
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A new stamp duty regime will expand the
Inland Revenue's range of anti-avoidance powers to discourage the transfer of
properties into companies in certain circumstances. There will be further
consultation on measures to prevent the use of partnerships to transfer
property without incurring a stamp duty charge. This modernised regime will
come into force for transactions completed after 30 November 2003 where the
contract was entered into after Royal Assent.
Lease duty will be brought closer into
line with the charge on transfers of freehold land and buildings. The new
charge will value the rent payable over the term of the lease at its discounted
net present value (NPV). A single rate of 1% of NPV is proposed where the NPV
exceeds £60,000 for residential property or £150,000 for
non-residential property. VAT will be excluded from being treated as
consideration for a new lease, provided the landlord has not opted to charge
VAT by the time the lease is granted. The changes will take effect from 1
December 2003.
Stamp duty will no longer have to be paid
on certain non-residential property transactions in disadvantaged areas from 10
April 2003.
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Other assets
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Stamp duty will be abolished from 1
December 2003 on transfers of property other than land, shares and interests in
partnerships; transfers of debts will be removed from stamp duty.
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| This summary has been
prepared very rapidly and may contain errors for which we cannot be held
responsible. The proposals are in any event subject to amendment before the
Finance Act is passed. |
