Amendments to the higher rate of SDLT for additional dwellings

In the Autumn 2017 Budget, the government announced that it was granting relief from the higher rate in certain cases.

The changes apply to transactions with an effective date (normally completion) of 22 November 2017 or later.

In short, the following categories will be exempt from the higher rate:

• Certain people who buy a residential property following a divorce or dissolution of a civil partnership. This exemption can apply where the purchaser retains an interest in another residential property that is their former partner’s main residence and which is subject to a “property adjustment order”.
• People who buy an additional interest in their main residence, or extend their lease, when they own other residential property.
• Spouses transferring property between each other.
• Trustees who buy residential property for children whose affairs are subject to certain court appointments. This can apply, for example, where a parent buys a residential property on behalf of a child who has lost mental capacity and the parent has been appointed to act as deputy for the child by the Court of Protection.