Blog - Cornerstone Tax - The UK's leading property tax advisers

2023 Spring Budget Stamp Duty changes

What are the changes for Stamp Duty in the Spring 2023 budget?

Buy-to-let could see surge of retirees as pensions fall short

A growing number of Brits are planning to invest in property to generate income in retirement as many remain wary of the effect markets have had on their savings and pensions. In January, inflation sat at 10.1 percent - a...

Common Sense from Cornerstone Wins Again

As the leading experts on Stamp Duty in the UK, we like to make sure we put our money where our mouth is, and a recent victory for one client illustrates not only the lengths to which we will go...

How the government made billions from stamp duty last year

The UK Government has released their official Stamp Duty Land Tax (SDLT) statistics for the 2021/22 financial year, and payments for the levy – commonly charged on the purchase of a property – have soared by 63% compared to 2020...

Top tips for first-time buyers looking to step onto the...

David explained: “You need to understand what you can afford if you take on too much mortgage debt and put too much of a strain on your monthly or weekly budget you’re going to run into trouble and that’s just...

Inflation fuels housing market activity in the North

The stamp duty holiday resulted in an exodus of inhabitants from cities such as London for a cheaper alternative where they can get more for their money. Despite the stamp duty tax holiday ending in September 2021, there has been...

How high will interest rates go? Bank of England in...

Led by Bank of England governor Andrew Bailey, the Monetary Policy Committee increased UK interest rates from 3.5 per cent to 4 per cent. This was widely predicted by City analysts. The MPC voted seven to two in favour of...

The complete guide to Multiple Dwellings Relief - Save on...

Multiple Dwellings Relief, usually referred to by the abbreviation MDR, is a provision in Stamp Duty legislation introduced in 2011 with the aim of encouraging property development and investment. Put simply, where someone is buying more than one residential dwelling...

The return to stability: Foreign investment keeps demand buoyant in...

As the housing market entered Q1 of 2023, confidence in the market was near inexistent. Carried over from Q4 of 2022 was the rise of inflation, high interest rates coupled with the effects of the infamous mini budget which put...

Homeowners weighing up moving or improving to go green

Half of homeowners said they have looked into making their home more energy efficient but found it too expensive without Government support, while 22% have found it impossible because of planning restrictions. It comes after the latest RICS Residential Market...

Sky News feature: One in five of landlords losing thousands...

Some 20% of landlords become one without the right knowledge - with that rate rising to 32% in the North East, according to Cornerstone Tax. Male landlords are more likely to struggle, with 25% of men losing money in buy-to-let...

MPs unclear about the future of Stamp Duty on UK...

The first bone of contention is the length of time the changes should last. It is the will of the Chancellor that these alterations to the SDLT thresholds be temporary, and the proposed date for them to end in the...

Tenants under 30 risk being “stuck” renting for years

For first-time buyers – we saw record rises in house prices last year which made the market increasingly difficult to enter. Now, even though the average cost of a property is falling, the increase in mortgage rates and the decrease in...

Analysts positive despite largest fall in house prices in 14...

Average house prices have seen their sharpest drop since 2008 according to the latest Halifax House Price Index. The index shows that the average house price fell by 2.3% in November to £285,579, which was the third consecutive fall and...

UK house prices fall at the fastest rate since 2008...

In Q4 of 2022, the UK housing market finds itself in a financial recession coupled with a cost-of-living crisis. Not only that, but the Bank of England’s decision to raise interest rates from 2.25% to 3.0% has also had a...

Property Talk: ‘The worst of the market volatility’ strikes the...

But views vary, naturally. David Hannah, group chairman of Cornerstone Tax, predicts that we’ll see house price growth between 5-8% next year. Why? He expects growth to be led in large part by foreign buyer demand. ‘We now have a...

HMRC loses SDLT case and is ordered to pay back...

Marcus & Marcus bought a property in 2015 which included a house, annexe, a summerhouse, and many other amenities. After paying a stamp duty worth £33,750 the company were subjected to an HMRC enquiry which found the rate of SDLT...

A guide to stamp duty land tax on non-residential property

Buying residential property can be a minefield when it comes to your Stamp Duty bill, with a variety of factors which may impact the final figure and most people being unaware of many of them. But what about if the...

Overpaid stamp duty? Dentists could be owed £50,000

It’s long been the case that part of the long-term retirement planning of many dental practitioners is to sell, or contribute, the practice premises to their pension schemes. The inherent advantages of a pension – namely tax-free roll up of...

What buy-to-let landlords must consider - Daily Express feature

We are proud to share our latest feature in The Daily Express on what landlords must consider in 2022. Cornerstone Tax is the UK's leading property tax advisers, specialising in Stamp Duty Land Tax.

Britain faces 'longest recession in history' as Bank of England...

The Bank of England hiked interest rates to 3% from 2.25% on Thursday as it tries to control runaway inflation which is battering British households. The 0.75% rise is the single biggest increase since 1989 and could see mortgage holders...

Rent prices have risen, again - and this is particularly...

Many of us have been left feeling powerless as rent and bills continue to rise and unfortunately, there's not much that can be done, according to David Hannah. But there are ways to make the price hikes more manageable, he...

Overseas investment to keep UK market buoyant even if domestic...

After the announcement of Lizz Truss’ economic plans earlier this month the financial markets went into panic, which resulted in widespread repricing of the mortgage market. This led to chaos for people across the property spectrum as 40% of mortgage...

Thousands of dentists could be owed £50,000 on overpaid Stamp...

Thousands of dentists are owed a Stamp Duty Refund from HMRC on overpaid Stamp Duty on SSAS and SIPP pensions. Confirmed by HMRC. Cornerstone Tax is the UK's leading property tax advisers, since 2006.

Average rate of a new two-year fixed mortgage climbs above...

The average rate of a new two-year fixed mortgage has climbed to 6.07% – rising above 6% for the first time since 2008. The rise comes amidst the chancellor Kwasi Kwarteng meeting with executives from Britain’s largest banks to discuss...

New stamp duty rates could save buyers thousands

With the rise in the stamp duty threshold and new allowances for first-time buyers, could there be some positives in the government’s recent mini budget? Since the Chancellor, Kwasi Kwarteng, announced his mini budget on 23 September 2022, it’s fair...

Average rate of a new two-year fixed mortgage climbs above...

A short guide for buy-to-let landlords entering the property market

As a buy to let investor, particularly a new one, you must make sure that you’re aware of your legal obligations. It’s not all about buying a property and sticking it on the market, you may have to register with...

Stamp Duty cuts on UK property - What does this...

Rocketing prices have put home ownership out of reach for millions of Britons, as pandemic era stimulus accelerated demand and caused values to jump. Now rising interest rates designed to combat inflation are pushing up the cost of borrowing for...

Stamp duty cut: Liz Truss’s short-term fix or much-needed boost...

The expected cut in stamp duty hopes to provide first-time buyers with a better chance to get on the property market,” he said. “With properties in the UK standing at the most unaffordable levels ever, anything which eases the ability...

What does the new Stamp Duty Cut mean for homebuyers?

Kwasi Kwarteng’s mini budget announcement today walked back a lot of changes announced under the previous administration, significantly lowering the tax burden for businesses and households alike in these challenging times. But his Stamp Duty cuts represent a more mixed...

UK Unleashes Slew of Property Tax Cuts to Stoke Market

Cut to stamp duty announced in the mini-budget in hopes...

The cut raised the threshold of how much a property has to cost before paying stamp duty to 250,000, doubling from the previous 125,000. Also introducing a measure of first-time buyers paying no stamp duty on the first £420,000, and...

What is a non-resident surcharge? A complete guide...

The surcharge applies only to residential property, so acquisitions of non-residential property (warehouses, shops etc) are exempt. Mixed use property is also explicitly exempt from the surcharge, for example if you were to buy a property which consisted of a...

First-time buyers unaware of affordable housing options

Despite changing mortgage products and the help-to-buy scheme closing for applications at the end of October, there are ways first-time buyers can make obtaining their first property an easier process for both short and long term. First-time buyers may be...

Is the UK housing market cooling?

The problem we do have in the UK property market is the rate of demand and supply. If builders are building and they’re over supplying, it will soften house prices and the appreciation in asset value. But if the number...

Thousands of pension savers could be owed combined £6bn due...

iNews feature: Tax specialists Cornerstone Tax has said that transfers of commercial property into pension schemes may have triggered Stamp Duty Land Tax even though the transactions may have been exempt.

First time buyers turning to Bank of Mum and Dad

Soaring house prices have made saving up for a deposit seem impossible for many, with contributions from the BoMaD towards purchasing a home amounting to a total of £10.7 billion in 2021 – more than double (115%) the amount in...

Are we heading towards a property market crash?

“The crash of 2008 happened because of a sudden loss of liquidity in the international banking market and we aren’t in that same situation again. We have had the pandemic, and substantial government spending because of it which has increased...

Stamp duty free: three ways to avoid paying the property...

This saves first-time buyers £5,000. If the property you’re buying is slightly over the £300,000 threshold, it might be worth negotiating with the owner about paying separately for any furniture, known as chattels, as these will be exempt. “Let’s say,...

How new disclosure rules could deter foreign buyers

With inflation in the UK rising to 9.4% in the year to June – marking its highest rate in 40 years, many are expecting a sharp decline in the property market, but the influx of foreign investment for properties in...

How to make an extra £670 a month from your...

David Hannah, Group Chairman of Cornerstone Tax, suggests that by taking the necessary steps needed to make your annexe or outbuilding Airbnb ready, property owners have the chance to create a significant new revenue stream averaging £670 a month. UK...

Top Stamp Duty saving tips for landlords

Multiple Dwellings Relief – the simplest place to start – if you have the funds available to purchase more than one property at once, you could make significant savings on you Stamp Duty bill. Working to take an average value...

Why landlords are facing big changes that will protect tenants

There are cases in which properties have been damaged and tenants refuse to let their landlord inspect the home, or where rent has not been paid for a considerable period of time, for example. I welcome the recent change of...

Average house price now £368,614 - What does this mean...

The average price of a UK property has hit a record high for the fifth consecutive month. It now stands at £368,614 according to Rightmove, however the 0.3% rise in June represented the smallest monthly increase since January, showing sings of a...

Will the ban on second homes in Whitby backfire?

Data from Rightmove shows the average house price in Whitby is £254,218 in contrast to the typical salary in the town of £18,900, with the influx of second home purchasers pushing properties out of affordability for many local residents, according...

Right To Buy - What's going to change for UK...

Group chairman of Cornerstone Tax, David Hannah, said: “A right to buy policy will enable long term renters who are happy in their current homes to turn themselves into homeowners. The concern is not so much the right to buy...

4 million homes now in higher Stamp Duty Bracket. How...

As a result of soaring UK house prices, more than 4 million homes have been pushed into a higher stamp duty bracket compared to March 2020. Of those pushed into a higher bracket, 28% have moved above the initial £125,000...

Property market crash: World Bank warns of recession - will...

Property prices have risen to astronomical heights, with average home prices continually breaching records and bringing misery to wannabe homeowners. But this could soon come to an end as a recession could be on the cards for the UK, creating...

Blast off! David Hannah of Cornerstone Tax - Retirement party

"To all of you who attended Friday night - I hope you had as much fun as I did. It was lovely to see so many current, and past faces, there being part of the story of the continuing story...

How to make passive income from your property in 2022

If you’re lucky enough to own a larger property, or perhaps you have adult children who have flown the nest, then this is one of the more straightforward ways in which your home can generate a bit of extra income...

How interest rates rising in 2022 will affect the property...

David Hannah at Cornerstone Tax: ‘I expect demand for UK housing to continue to outstrip supply,’ he says, ‘pushing price increases ahead of inflation and provided wages are increased, the affordability of housing will stay in lockstep.’ He goes on...

5 ways to make passive income from your property in...

A study from IW Capital shows that 29% of Brits are planning to earn money through passive income sources in the next year as they search for options to diversify their income. Homeownership represents a great financial opportunity with 1-in-3...

House prices: Why you should buy a house Now to...

Buying a house now will cost you an average of £28,000 more now than it would have this time last year - but one expert has outlined how higher prices may not actually be a bad thing for prospective buyers....

When Pension Trustees get it wrong, what happens?

In cases such as the recent one covered by the BBC, whereby two trustees were jailed for a ‘scam’ which had defrauded millions of pounds from the pension savings of some 245 people, the reasoning is obvious and logical –...

Almost 30% of Brits are struggling to service their mortgage

It’s deeply concerning that 30% of people are finding it hard to service their mortgage or rent amid the cost-of-living crisis. We’ve all got used to low-interest rates and, while these haven’t risen dramatically compared to the 1980s and 1990s,...

Top 10 Stamp Duty Reliefs - A simple guide missed...

MDR was introduced in 2011, mainly to correct what was perceived to be a disadvantage to investors in property, namely the large SDLT bill which could result when purchasing multiple smaller properties as part of one transaction. A block of...

Why new build houses are more expensive than old houses

For a start, there is without a doubt a lot more demand for starter homes and smaller homes. This is due to generally lower incomes for younger buyers and the difficult of getting deposits, meaning that smaller (i.e. cheaper) homes...

Cornerstone Tax - SDLT Refunds announcement

Today - 21st March 2022 - Cornerstone Tax SDLT Refunds announced the immediate “retirement” of their senior consultant David Hannah. Marking the conclusion of a 38-year tenure, it is understood that Mr Hannah who has been a long-term sufferer of...

A guide to Mixed-use developments - When you can save...

We all know the standard ways in which a saving on Stamp Duty can be made – be a first-time buyer, buy and complete on a property before the 30th September 2021, or simply buy a property beneath the threshold...

Homeowners turn to green renovations to help combat energy crisis

With energy prices soaring for millions of households in the UK, homeowners are searching for solutions to ease the increased cost of energy in their home. The rise in energy costs was caused, predominantly, by multiple energy suppliers going out...

Stamp Duty in 2022 – Insights + changes

The gov.uk website’s latest quarterly Stamp Duty Land Tax statistics commentary makes for some interesting reading. Though largely expected, some of the results of the last twelve months of additional tinkering to the Stamp Duty system in the U.K. are...

A simple guide to Stamp Duty Land Tax (SDLT)

Stamp Duty Land Tax, SDLT, or Stamp Duty as it is commonly (and erroneously) referred to, is a tax paid by purchasers of land and property purchased in England and Northern Ireland (in Scotland it was replaced in 2015 by the Land and Buildings Transaction Tax and in...

How to tell if you've overpaid on Stamp Duty Land...

Stamp Duty Land Tax (or SDLT) has been big news lately, with the chancellor’s announcement in July of a ‘holiday’ on the tax for all properties of £500,000 or lower purchase price. But what if you bought property at any price before July 2020?...

The £10bn hole in the pension industry - SSAS &...

Recently, The Financial Times featured our comments on business owners who may have incorrectly paid Stamp Duty Land Tax when transferring their commercial property into their SSAS or SIPP pension.

3 examples of cliff edges in Stamp Duty

Over and above these dramatic rate and tax bill changes there are some cliffs which are, in mathematical terms bottomless - these are the 40 plus Reliefs which afford complete exemption from SDLT - yes you have heard it here first! - Stamp...

5 ways you could save thousands on your Stamp Duty...

Cornerstone’s research into and experience within the area of property tax suggests that many of these people have paid the incorrect amount of SDLT, and that many more continue to do so. In the last twelve months alone, we have...

HMRC guidance change reveals critical error in 3% surcharge for...

HMRC recently updated its guidance on the 3% Stamp Duty surcharge, no doubt hoping that a list of fairly dull and unexceptional adjustments and clarifications could help hide one particular bombshell climbdown that it was making - But despite its earlier denials but there is a...

Stamp Duty Land Tax (SDLT) on Second Home - How...

Because Stamp Duty now operates on a ‘slice’ system, this means that rather than an additional 3% on your purchase price, the surcharge is actually charged at a rate of 3% per ‘slice’ of the purchase price as defined for Stamp Duty...

Is the new Stamp Duty Holiday enough? Our thoughts...

The rapidly approaching ‘cliff edge’ of the 31st March had been a topic of contention for some time, with solicitors, estate agents, and indeed ourselves calling for some sort of allowance to be made to avoid the potentially catastrophic loss of sales...

How long does a Stamp Duty Refund take?

Still, after ‘How much could my Stamp Duty refund be worth?’. The question of how long it might take to obtain is the next most common one. And that’s fair – it makes sense that after finding out how much...

How much Stamp Duty will I pay? A short guide...

In theory, SDLT is easy enough to calculate. Go to HMRC’s website (or indeed simply google ‘How much SDLT?’) and you’ll find easily enough the basic standard tables of numbers which suggest that SDLT is a static feast – a...

Capital Gains Tax on Property – A Beginner’s Guide

Capital Gains Tax (aka CGT) is a tax often associated in people’s minds with the very rich, when in fact nothing could be further from the truth. CGT is a tax charged on the sale of certain assets including property,...

The simple guide on how to tell if you’ve overpaid...

If you have a Self Invested Personal Pension (SIPP) or a Small Self-Administered Pension (SSAS) into which you have placed commercial property in the last four years, you may find that there is a substantial rebate awaiting you direct from HMRC themselves. Often, when...

How much Stamp Duty do I need to pay? The...

If you’ve ever bought and/or sold property in England, or indeed been paying attention to the news for the past year, you’ve likely heard the term ‘Stamp Duty’. SDLT stands for Stamp Duty Land Tax, which is referring to the...

How Multiple Dwellings Relief on Stamp Duty could save you...

One of the biggest issues in SDLT at the moment relates to Multiple Dwellings Relief or MDR. This has been somewhat of a controversial topic in recent times, with Law firms seeing growing numbers of claims made against their property departments for ‘missed’...

A guide to Mixed-use developments and when you can save...

Why HMRC’s Stamp Duty Calculator isn’t always Correct

It doesn’t help that for starters, the calculator doesn’t ask all the questions which might be pertinent to the final Stamp Duty figure. Since it’s inception in 2003, replacing the old Stamp Duty. Stamp Duty Land Tax (or SDLT) has...

Stamp Duty – How HMRC could owe you up to...

So how do you know if you’re entitled to a refund? Well, the basic clues are things like whether the property you own has an annexe or separate dwelling as part of the grounds, whether it contains land beyond the...