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STAMP DUTY LAND TAX
Reforms were introduced to the charging provisions for non-residential property.
The stamp duty land tax (SDLT) charged on purchases of non-residential properties
and transactions involving a mixture of residential and non-residential properties is to
change for transactions on or after 17 March 2016.
Thereafter SDLT will be charged at each rate on the portion of the purchase price which
falls within each rate band. The new rates and thresholds are as follows:
Transaction value band
Rate
£0-£150,000
0%
£150,001 - £250,000
2%
£250,001 +
5%
For new leasehold transactions, SDLT is already charged at each rate on the portion
of the net present value (NPV) of the rent which falls within each band.
On and after 17 March 2016 a new 2% rate for rent paid under a non-residential lease
will be introduced where the NPV of the rent is above £5 million.
The new rates bands and thresholds for rent paid under a lease are:
Net present value of rent
Rate
£0-£150,000
0%
£150,001 - £5,000,000
1%
£5,000,000 +
2%
Higher rates of SDLT will be charged on purchases of additional residential properties, such
as second homes and buy-to-let properties. The higher rates will be 3 percentage points
above the current SDLT rates:
Thresholds
Existing SDLT rates New additional
property SDLT rates
£0-£125,000
0%
3%
£125,001-£250,000
2%
5%
£250,001-£925,000
5%
8%
£925,001-£1,500,000
10%
13%
Over £1,500,000
12%
15%
The announcement also provides arrangements where there is a period of overlap or a gap
in ownership of a main residence.
Companies purchasing residential property will be subject to the higher rates, including
the irst purchase of a residential property. Properties purchased for under £40,000,
caravans, mobile homes and houseboats will be excluded from the higher rates.
CLIMATE CHANGE LEVY
Rates for the climate change levy (CCL) are to increase for 2017/18, 2018/19
and 2019/20. The CCL main rates will increase in line with RPI.
These increases are partly intended to replace tax revenues lost as a result of the abolition
of carbon reduction commitment energy eficiency scheme. The reduced rates of CCL for
qualifying businesses in the climate change agreement scheme will be amended
11
| Duties
DUTIES
so participants will not pay more CCL
than they would under the currently
expected RPI increase for that year.
FUEL DUTY
The main rate of fuel duty for both petrol
and diesel are to remain frozen
at 57.95 pence per litre.
VEHICLE EXCISE DUTIES
Vehicle excise duty rates are to be
maintained in real terms by increasing
the duty by the RPI. This is a consistently
applied policy as rates have increased
in line with inlation since 2010. The next
increase in rates will apply on 1 April 2016.
EXEMPTION FOR CLASSIC
VEHICLES
A 40 year rolling exemption for classic
vehicles was announced in Budget 2014.
Budget 2016 now makes this a permanent
exemption for classic vehicles so that on
1 April each year vehicles constructed more
than 40 years before 1 January that year
will automatically be exempt from paying
vehicle excise duty. It is reported that there
are around 10,000 classic vehicle owners.
FUEL DUTY
REMAINS
FROZEN