The Chancellor of the Exchequer has announced in today’s spring budget that, as of June 1st, significant changes will be introduced to the Stamp Duty Land Tax (SDLT) rules, affecting transactions involving multiple dwellings. B P Collins’ property team explores what this could mean for property investors and developers.
The SDLT rules previously provided a discount in the tax rate for transactions where multiple dwellings were purchased in a single transaction. The policy was intended to incentivise investment into the residential property sector.
This change comes as part of a broader adjustment to SDLT regulations announced today, responding to independent analysis that the tax break was being “abused” and was not having the intended impact on investment. Its discontinuation may prompt review of investment strategies and portfolio structures.
Transactions that have already exchanged (prior to March 6th 2024) may still benefit from the discounted SDLT rates if Multiple Dwellings Relief (MDR) applies, regardless of when they complete, subject to the transitional rules being put in place. Therefore, clients with ongoing property transactions involving multiple dwellings that have already exchanged contracts (prior to 6 March 2024) should consult B P Collins’ property team if their completion is due to be later than 1 June 2024 for further advice.
Property investors and developers should continue to monitor these developments and adapt their strategies accordingly to mitigate risks and optimise financial outcomes.
At B P Collins, we understand the significance of these changes and are committed to providing our clients with comprehensive guidance and support to navigate the evolving regulatory landscape effectively. Our team of experienced legal professionals is equipped to assist clients in any restructuring or transactional steps that arise as a result of this change. We also work with a range of specialist tax advisers who can assist our clients in these matters. It is our aim to ensure that property transactions proceed smoothly and efficiently. Please note we are not tax experts and cannot provide substantial tax advice.
For further information or assistance regarding how we can assist you please do not hesitate to contact B P Collins’ property team at enquiries@bpcollins.co.uk or call 01753 889995. We are here to support you every step of the way.
