SLC calls on Government to think again about proposed SDLT changes on private sector landlords
8th February 2016
Measure could adversely affect UKs position in World Bank’s rankings
The Society of Licensed Conveyancers (SLC) today called on the Government to think again about proposed measures to increase the SDLT obligations for small private sector landlords and second home owners. Aside from the seeming attack on smaller investors (those with over 15 properties are exempt), and the likelihood of the reform not achieving its objectives, it is also likely to cause delays to property transactions. Further it appears to place undue responsibility on conveyancing lawyers not only to discover the circumstances of every purchase that they handle, but also to detect when clients may not be disclosing other property assets, and which may of course be held abroad.
Simon Law, Chairman of the Society said: ‘for a Government that has expressed its intent to speed up the home buying and selling process, this proposed reform seems a step backwards. The new levels of bureaucracy that it will entail, particularly for property buyers and their lawyers, will cause delays to property transactions. It is also likely to increase legal costs for all home buyers to cover the additional work involved for conveyancers. This flies in the face of the Government’s intention to improve the UKs standing in the World Banks ease of doing business rankings.’
‘SDLT is a tax, and ultimately HMRC must take responsibility for policing this new obligation and detecting where buyers do not disclose that they own other assets. It is unreasonable and an abdication of responsibility to expect conveyancers to police this new tax’ Law added.
The SLC has submitted its response to the consultation and has proposed amongst other things that if the Government is intent on seeing a tax on ‘buy to lets’ through it should make it on third and not second owned properties. Further, on the basis that foreign owned properties are not impacting on homebuyers in UK, they should be completely excluded. The reform should also embrace all property investors, not just the smaller ones, and the 15 property limit should be scrapped.