More property owners will be caught in the stamp duty land tax (SDLT) net after the Chancellor confirmed the limit would fall to just £500,000.
The Chancellor had already imposed the duty on all properties bought through a corporate envelope above £2m, but from midnight tonight this will fall to just £500,000.
This means that practically every property in London bought for investment purposes through companies will fall into the 15% tax bracket.
Osborne said in his speech: “Many of these are empty properties held in corporate envelopes to avoid stamp duty”.
Legislation will be introduced in Finance Bill 2014 to reduce the current threshold at which the Annual Tax on Enveloped Dwellings (ATED) bites from £2m to £500,000 phased in over the next two years.
In our live panel session during the Budget speech, tax editor Rebecca Benneyworth reacted to the...