The UK government has introduced a new tax on the purchase of additional residential property, raising concerns that Middle Eastern investors could become more cautious about making multiple acquisitions in a market they have traditionally perceived as a safe haven for their cash.
In the annual Budget announced, the Treasury confirmed it would introduce an extra 3 percent stamp duty land tax (SDLT) on the purchase of “second homes” from April 1, 2016 meaning that anyone buying an additional residential property, whether to live in or as a buy-to-let investment, would be liable for the tax.
Transactions completed before midnight on 31 March will be exempt from the levy; likewise properties where contracts were exchanged before November 25 will not be liable, even if completion takes place on or after April 1.
