Higher Stamp Duty Rates and the Impact on Your UK Relocation Programme
In January, we published a Mobility Insights on proposed increases to UK Stamp Duty Land Tax (SDLT) rates for purchases of additional residential properties. In March, the UK government confirmed that this increase would be implemented from 1 April 2016. Our follow-up Mobility Insights: Impact on UK Relocation: Higher Rates of Stamp Duty Land Tax (SDLT) on Purchases of Second (and Subsequent) Residential Properties provides more information about how the new rates may impact your UK relocation programme.
The New Stamp Duty Rates
From 1 April 2016, SDLT rates increased by three percentage points above the current residential rates. The tax is charged on the portion of the value of the property that falls into each band, but will not apply to purchases of property under £40,000.
Impact on UK Relocation
These changes are intended to increase tax rates for those buying additional residential properties, but there are implications for companies and relocating employees moving in and around England, Wales, and Northern Ireland. Our latest Mobility Insights looks at how the new rates will impact:
- Employees participating in Cartus’ UK Homesale programme
- Employees who reject the guaranteed sale price offered
- Companies that allow relocating employees to purchase a second home in the host destination
- Companies that set relocating employees a specific timeframe to make use of relocation services
- Refund and payment processes