Will cohousing groups need to pay more tax?
Respond to the consultation on changes to SDLT before 1 February 2016.
The government is currently undergoing a consultation on changes to SDLT. SDLT is the tax which is paid by the buyer when property is purchased. One of the proposed changes is that a corporate vehicle (such as a company) would pay a higher rate of SDLT when purchasing its first residential property. This would mean that cohousing groups who buy existing residential property for development would need to pay more tax on the purchase.
It would mean an extra 3% on the purchase price would need to be paid to the government for the additional SDLT charge. For example, for a residential property costing £750,000, the SDLT payable would increase from £27,500 to £50,000.
Wrigleys has drafted a suggested response to the consultation. Please contact us for a copy.
Responses should be emailed to email@example.com by 1 February 2016, when the consultation closes. We recommend you submit it by 31 January 2016 to make sure your response is received in time.
For more information about Wrigleys' advice in this area, please click here