Measure
(i) Amendments will be made to the SDLT legislation to update references and definitions for the exemption for purchases of social housing by registered providers where the purchase has been at least partly funded by public subsidy. The amendments will update the list of public subsidies to include public grants which have been permitted to be retained and recycled to qualify for the exemption.
(ii) Public bodies will be removed from the SDLT 15% higher residential rate charge, designed to target companies avoiding SDLT when purchasing residential property valued at over £500,000 for no commercial purpose.
(iii) First-time buyers’ relief will be amended so that individuals who purchase new residential leases using nominee or bare trust arrangements will be able to claim the relief and ensure that individuals who have used such arrangements in the past are unable to claim the relief on future purchases made in their own name.
Registered providers of social housing where a purchase is funded with the assistance of a public subsidy, public bodies that purchase residential property in the UK worth over £500,000 and individuals who purchase a leasehold interest in residential property using nominee or bare trust arrangements.
These changes will generally apply where the effective date of transaction is on or after 6 March 2024.
These are welcome changes to ensure that the registered providers exemption and first-time buyers’ relief operate as intended and so that the treatment of public bodies in relation to SDLT is consistent with Annual Tax on Enveloped Dwellings (ATED), a separate anti-enveloping measure, which does not apply to public bodies.