BHP Law alert over stamp duty changes

PROPERTY owners who bought high value homes under the names of their businesses could face a major tax hike.

A North-East law firm has warned buyers who purchased homes through a business, partnership or collective investment to avoid stamp duty may be hit with a £300,000 bill.

BHP Law, which has offices in Darlington, Durham, Newton Aycliffe and Stockton, said the government had announced plans to stop tax avoidance by placing a 15 per cent rise on stamp duty for properties bought for more than £2m.

Emma Gaudern, a partner at the law firm, warned of further changes in April, including an Annual Residential Property Tax (ARTP), which could mean people having to pay £140,000 a year on properties bought in the name of businesses.

She said: “The government has been looking for a while at how it can close down the stamp duty loophole that is offered by buying a property within a corporate structure.

“This new stamp duty land tax charge, especially when combined with the ARTP, is really going to put people off using companies as planning tools.

“Anyone who owns a residential property worth over £2m within a corporate vehicle must seek advice as soon as possible so they can implement any changes they need to make before the April 2013 cutoff.”

click2find

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree