In my previous post I asked whether the new stamp duty proposals to clobber the rich would also hammer the investment market.
In this year’s budget there was an immediate increase in the Stamp Duty Land Tax (SDLT) rate applied to residential properties over £2 million bought by a company - the new rate is 15%.
The government is now consulting on two further measures announced in the budget:
· The introduction of a new annual charge on residential properties worth more than £2 million held through companies, to commence in April 2013.
· Charging capital gains tax (CGT) at the usual rate on residential property held by overseas companies (at the moment non-UK residents don’t pay CGT at all), also to commence in April 2013.
For a more considered view of all this, there’s an interesting piece from Helen Ratcliffe at Bircham Dyson Bell.
She writes that the Consultation Document is so short (the substance is a scant 20 pages), time is needed to tease out implications that are not immediately obvious, and to identify the significance of things that are not said.
There may be a need to make changes in current ownership structures, but they should not be rushed into.
Anyway, if all this has put you off buying a mansion, you could always buy a beach hut instead.
The Guardian reported yesterday that a 5.6 by 3.2 metre timber cabin on the south coast near Bournemouth (not the one in my photo – that’s in Brighton!) may have become the UK’s most expensive beach hut, fetching £170,000 after a mere two days on the market.
It has running water and, if you’re worried about sustainability, insulation, double glazing and solar panels.
No toilet though - if you’re caught short you have to go to a residents block nearby.
Could save you a fortune in toilet paper, and tax advice.