The Finance Bill 2011 will provide a fairer system of charging SDLT for those buying property in bulk, be this blocks of flats or a number of properties off plan from a Developer.
Historically, on purchases of this type, the SDLT rate would be calculated on the global price paid often resulting in a huge SDLT bill. For some trading subsidiaries of RSLs this substantial outlay has been off putting. Once the Finance Bill receives Royal Assent, SDLT for such multiple purchases will be calculated on the average price, significantly reducing the SDLT bill.
Guidance published by HMRC confirms that the relief will be given to purchases "off plan". This relief will assist RSL subsidiaries who would otherwise be facing a large SDLT bill to invest, perhaps for mid-market or other tenure options.
We regularly advise clients on bulk purchases and would be pleased to give you specific advice on any future purchases, please get in touch if you would like further information or advice.