Summary of SDLT /SDRT measures in Budget 2007

  • SDLT rates and thresholds remain unchanged by Budget 2007.

For transactions with an effective date on or after 22 March 2007:

  • Reliefs for alternative property finance will be extended, to allow dealings in the interest held by the financial institution to take place free of SDLT. Further details about this measure are published in Technical Note

Apart from the extension of reliefs for ‘alternative property finance’ there are no changes which take effect before Royal Assent to the Finance Bill

From Royal Assent to the Finance Bill:

  • The relief from SDLT offered to shared-ownership leases will be replicated for shared ownership trusts (a new way of providing affordable housing).
  • The exchange of property between connected persons will no longer be treated as a linked transaction for the purposes of SDLT.
  • Existing stamp duty and SDLT reliefs for certain transfers of surplus school land under provisions in the School Standards and Framework Act 1998 will be repealed. These provisions are amended by the Education and Inspections Act 2006 and Regulations will be introduced to bring transactions under the amended provisions within the general SDLT relief for statutory transfers involving public bodies.
  • The Government will make two minor changes to SDLT legislation which will facilitate development of electronic conveyancing and registration systems.
  • There will be permanent provision to counter SDLT avoidance schemes, replacing the Regulations made on 6 December 2006.
  • Changes will be made to the stamp duty and stamp duty land tax acquisition reliefs. A company that has purchased its own shares will no longer be regarded as a shareholder of itself for the purpose of the reliefs.

From 1 October 2007:

  • Relief from SDLT for most zero-carbon homes on first acquisition will be introduced.

In Finance Bill 2007:

  • Legislation will be introduced to bring the reliefs for intermediaries and repurchases and stock lending into line with the Markets in Financial Instruments Directive (MiFID) which will come into effect on 1 November 2007.

More detail on specific measures can be found on the Budget 2007 page.