Housebuilder Top Tip - Budget 2014: Boost for housebuilders
Published 31 March 2014
Delivering his fifth Budget on 19 March 2014, the Chancellor George Osborne pledged to put an end to stamp duty avoidance by hitting companies purchasing properties worth over £500,000 with a levy of 15% of the purchase price.
The good news for housebuilders is that in situations where you acquire a residential house and its garden with the intention to build a new house in the back garden, and then sell the original property and the new house individually, you will not be caught by this new legislation.
You are not considered a "company" and caught by the new legislation provided that you acquire the property in the course of a bona fide property development business and for the sole purpose of developing and reselling the land.