Chancellor George Osborne has today insisted stamp duty loopholes will be closed in a bid to clamp down on a “major source of abuse”.
He branded the avoidance of stamp duty as an act that “rouses the anger of many of our citizens” during today’s Budget speech.
Osborne explained as of today he will increase the stamp duty land tax charge to 15% on residential properties worth over £2m bought into a corporate envelope.
He added the Coalition will also consult on the introduction of a “large annual charge” on £2m residential properties already contained in corporate envelopes.
Osborne added “to ensure wealthy non residents are also caught” the government will also be introduce a capital gains tax on properties held in overseas envelopes.
He said: “Let me make this absolutely clear to people if you buy a property in Britain that is used for residential purposes we will expect stamp duty to be paid.
“I have given plenty of public warning that this abuse should stop and now we are taking action.
As had already been predicted by experts Osborne also confirmed the introduction of a 7% stamp duty rate on residential properties worth more than £2m.
This has been calculated to be more than 5% a year for a property held for 10 years and could add significantly to government coffers.
Osborne added: “It is fair when money is tight that those buying the most expensive homes contribute more.”