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Higher rates of stamp duty land tax
HMRC has published guidance explaining a proposed amendment to the rules on how the higher rates of stamp duty land tax for additional residential properties apply to individuals funding purchases under an alternative finance transaction.
In an alternative finance funded purchase there will be a first transaction, which is the purchase of the property by a financial institution from the vendor. There will then be a second transaction, which is either a further sale to or lease by the financial institution to the ultimate purchaser.
In essence, when determining whether the higher rates apply, the tests will apply as if the purchaser under the first transaction was the person ultimately buying the property rather than the corporate financial institution.
