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Budget 2012: Government consulting on extra charge for properties bought via companies

The government is consulting on the introduction of an annual charge on residential properties worth more than £2m which are bought via companies.

In today’s Budget, chancellor George Osborne announced that the Stamp Duty rate for properties over £2m bought by non-natural persons, such as companies, would be raised to 15%.

But the Budget report published by the Treasury shows it is also considering bringing in an additional charge on property transactions of this kind from next year.

It says: “The government will consult on the introduction of an annual charge on residential properties valued at over £2m owned by these persons with the intention of legislating in Finance Bill 2013 for commencement in April 2013.”

The report says the government is also planning to extend the capital gains tax regime to cover gains on the disposal of residential property by non-resident persons such as companies in order to support these changes.

This will take effect from April 2013, following a consultation on the details of the measure.



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