Ruth Cadbury – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Ruth Cadbury on 2016-02-03.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the planned increase in stamp duty on the ability of people to purchase a retirement property in advance of selling their primary home.

Mr David Gauke

From 1 April 2016 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. This is part of the Government’s commitment to supporting home ownership and first-time buyers.

The Government has carefully considered the case where a purchaser buys a new main home in advance of selling an old one. Where there is a temporary overlap between replacing and selling a main residence, the Government intends that higher rates will apply but the purchaser will be entitled to a refund of the higher amounts when they dispose of their previous main residence within 18 months.

The Government has consulted on the changes to ensure they are introduced in a fair way. The final policy design will be confirmed at Budget on 16 March 2016.