5. Stamp Duty Land Tax
Where purchasers of residential property acquire more than one property the transactions can be linked, as a result of which the rate of SDLT relates to the aggregate price for all the linked properties.
Legislation will be introduced in Finance Bill 2011 to provide relief for purchasers of residential property who acquire more than one dwelling. The rate of SDLT on the total consideration will be determined by the mean consideration, subject to a minimum rate of 1%.
The objective of the change is to strengthen demand for and reduce a barrier to investment in residential property.
Finance Bill 2011 will also introduce specific anti-avoidance provisions affecting three areas of potential avoidance. These changes will affect rules on sub-sales and Alternative Finance reliefs; the definition of financial institution for Alternative Finance reliefs; and the determination of consideration for exchanges of land.