Under new proposals buy-to-let homes bought in company names may be taxed more leniently than other premises.
It is thought that the measure brought in at the last Budget forcing all corporate vehicles to pay a 15% stamp duty on properties above £2m may see some exceptions, likely to include buy-to-let properties which are set to be subject to the 7% stamp duty rate instead.
The plans are expected to be a key outcome of a consultation on the taxation of residential property with the results due to be announce on Tuesday. An unnamed source said that “The Government appears to have understood that some property, including portfolios of buy-to-lets, are bought in company names for genuinely commercial reasons and not to avoid paying stamp duty.”
Announcements will also be made on whether there will be an annual charge and capital gains tax payable on these properties.
Sunday Express, Financial, Page: 2
We say: Given that the objective of the penal SDLT rate was said to be to discourage people enveloping their home in a company, it’s bizarre that there should ever have been any question of its applying to bona acquisitions of property by a bona fide commercial property investment business. Still, we should be grateful for small mercies. Let’s wait and see the small print.