Stamp Duty Land Tax Increase

From 6 April 2011, the rate of Stamp Duty Land Tax (SDLT) payable on residential
property purchased for more than £1m will increase from 4% to 5%. This SDLT increase will not have any effect on commercial property transactions.

The increased rate will apply to transactions by reference to the "effective date" of the transaction which is interpreted as being the date on which the sale and purchase contract is  "substantially performed". In most cases therefore this will be the date of completion and not the date of exchange of contracts. As such to benefit from the 4% SDLT rate on properties at over £1m the transaction must complete before 6th April 2011.