To download a PDF version of this document, click here
Date of publication: March 2012
The registration threshold has increased to £77,000 and the deregistration threshold to £75,000.
The threshold has been reduced to zero for businesses established outside of the UK making taxable supplies within the UK. Such businesses will now have an immediate need to register.
Low value consignment relief- which enabled goods to be sent from the Channel Islands without VAT- is removed with effect from 1st April 2012.
Zero rate for approved alterations to listed buildings will cease to apply from 1st October 2012.
The rules have been tightened up to ensure VAT is charged at the standard rate in a number of previously "grey areas":
The rate of SDLT will increase (by 2%) to 7% on UK residential properties where the chargeable consideration is over £2 million.
A penalty SDLT rate of 15% for UK residential property acquisitions by "non-natural persons" when the consideration is over £2 million.
A "non-natural person" includes companies, collective investment schemes and partnerships in which a non-natural person is a partner. Property developers and corporate trustees "in certain circumstances" will be excluded from the new rate.
|£125,000* or less||£150,000 or less||Nil|
|Over £125,000* up to £250,000||Over £150,000 up to £250,000||1%|
|Over £250,000 up to £500,000||Over £250,000 up to £500,000||3%|
|Over £500,000 up to £1m||Over £500,000||4%|
|Over £1m up to £2m||N/A||5%|
* £150,000 for property in disadvantaged areas.
** 15% if purchased by a non-natural persons e.g. company, collective investment schemes and partnerships
This guide does not contain a full statement of the law and it does not constitute legal advice. Please seek legal advice if you have any questions about the information set out above.