The higher rates coming into force this April will be 3% percentage points above the current SDLT rates and will apply to purchases of additional residential properties in England, Wales and Northern Ireland.
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In last year’s pre-election budget, Osborne appeased wine drinkers with a freeze on duty – but wine still fared the worst, because beer and spirit duties were cut.
In another blow to buy-to-let landlords, the Chancellor has excluded them from the cuts he has made to capital gains tax (CGT) rates.
A small share in a property which has been inherited within the 36 months prior to a transaction will not be considered as an additional property when applying the higher rates.
The funds generated, he says, will fund local housing schemes.
New stamp duty rates for commercial property were also announced.
Stamp duty for commercial property buyers will now have a 0% charge on the first £150,000, a 2% charge between £150,001 and £250,000, and a 5% charge on the above £250,000, with the changes set to come into operation form midnight tonight. This will allow people to earn more profits over their assets.
These changes are likely to be welcomed by small business owners and property investors, however the 5% band could affect the market for larger commercial properties.
Last year’s 2% cut in excise helped boost revenue from spirits for the Treasury by £102 million and the Scotch Whisky Association had argued that George Osborne should do the same this year to help the public finances, a home-grown industry and consumers.
“I think the move to mirror the residential stamp duty slice system for commercial properties is also a fair one, but again, not a move that will benefit the man on the street, but more the larger commercial developer”.
The rate of corporation tax will be reduced to 17% by April 2020, Osborne added.
“We’re already in a position where demand outstrips supply and as supply falls, rent costs rise, meaning the goal of home-ownership falls even further out of reach for most of the country’s renters”.
Peters added: “Most dealers would expect to pay just 10% capital gains tax when they sell their company, by virtue of Entrepreneurs’ Relief”.
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Osborne’s announcement may put more financial pressure on the wine supply chain, particularly at a time when the sterling currency has weakened against the euro, effectively making it more expensive to import wine from the eurozone countries such as France, Spain and Italy.
