Trying to get my head around companies/non-natural persons buying residential properties and am confused.
Previously if value was over £500k- rate was 15%, unless a property developer where relief was available if qualifying conditions were met-so paid at the normal rates.
With the new rules as I understand it, all companies are subject to the additional 3% surcharge.
So under the new banding system a company acquiring residential property for say £500k- the rate is 8% which seems a good deal.
However reading question 24 and 25 of the HMRC guidance notes issued on 16th March it implies the 15% rate is still around?
I would appreciate any help and guidance.
Replies (6)
Please login or register to join the discussion.
Well...
... the new rates (under FA 2003, section 55) apply unless the higher (15%) rate (under section 55A and Schedule 4A) applies. The 15% rate continues to apply where it applied previously.
The answer is £71,800 if you
The answer is £71,800 if you will be developing, and £147,750 if not used in a property business or as stock in a development business.