The additional Stamp Duty Land Tax (SDLT) surcharge for companies acquiring residential property will increase from 3% to 5%, effective today, 31 October 2024.
This change is likely to be unwelcome among developers, who are already contending with higher tax costs following the abolition of multiple dwellings relief earlier this year.
For development projects where the initial acquisition involves an existing dwelling or dwellings, SDLT rates of up to 19% will significantly impact project viability. Whilst the government is aiming to unlock the housing market, these SDLT adjustments may act as a brake on development schemes.
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