PARLIAMENTARY WRITTEN QUESTION
Stamp Duty Land Tax (3 February 2016)

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the planned increase in stamp duty on the ability of people to purchase a retirement property in advance of selling their primary home.

Asked by:
Ruth Cadbury (Labour)

From 1 April 2016 higher rates of SDLT will be charged on purchases of additional residential properties, such as second homes and buy-to-let properties. The higher rates will be 3 percentage points above the current SDLT rates. This is part of the Government’s commitment to supporting home ownership and first-time buyers.

The Government has carefully considered the case where a purchaser buys a new main home in advance of selling an old one. Where there is a temporary overlap between replacing and selling a main residence, the Government intends that higher rates will apply but the purchaser will be entitled to a refund of the higher amounts when they dispose of their previous main residence within 18 months.

The Government has consulted on the changes to ensure they are introduced in a fair way. The final policy design will be confirmed at Budget on 16 March 2016.

Answered by:
Mr David Gauke (Independent)
8 February 2016