Taking a broader view, the fundamental demand drivers of London as a global city were significantly boosted by other measures in the Budget, such as lower rates of corporation tax, which significantly improve London’s global competitiveness.
A 7% stamp duty charge does not cause London to be substantially out of kilter with other global cities. Before the Budget, London was less expensive than Paris for property acquisition, now it is marginally more expensive.
A 15% SDLT charge would make London significantly more expensive than its peers, though it should be remembered that this only applies where a property is transferred into the ownership of a ‘non natural person’, namely a corporate vehicle.
Other global cities
For those buying shares in an existing Special Purpose Vehicle stamp duty will not be a consideration, rather they will be focused on the prospective annual charge and the effect of a proposed CGT charge, if and when the property is sold out of the corporate vehicle. Though offset by ongoing stamp duty savings, the annual charges would be high relative to other global cities for our typical ‘billionaire’ residence in those circumstances where they are charged.