It offers the potential for major savings on many residential transactions below £937,500 but above that figure there’s every chance of a more punitive Stamp Duty bill to be paid by purchasers. So what will the effect be on the Farms and Estate market?
The existing 4% SDLT rate has remained unchanged for “non-residential and mixed use properties” and it means that careful attention must be given when offering for sale large landholdings that include residential properties.
Farmers Weekly’s Land Tracker shows the area of open market sales has fallen about 15%, suggesting only about 110,000 acres were publicly marketed in 2014.
At a price of £1 million, the difference in SDLT using the new residential system and 4% mixed use rate is only £3,750, perhaps not enough to concern a buyer. But where these homes are of substantial size and likely to attract prices in excess of £2 million the