Zero Carbon Homes 'freed' from Stamp Duty
04th May 2007

Naylor Wintersgill are highlighting the introduction of a time limited Stamp Duty Land Tax (SDLT) exemption on the purchase of ‘zero carbon’ homes, which could prove attractive for investment funds and residential Real Estate Investment Trusts (REIT’s).

The relief, which will apply from 1 October 2007 to 30 September 2012, will be available for the purchase of ‘zero carbon’ homes costing up to £500,000. The Government defines a ‘zero carbon’ house as a property with "zero net emissions of carbon dioxide from all energy use in the home,” including energy consumed by any household appliances as well as heating and ventilation.

The Government also recently revealed that from 2016 all new homes would have to adhere to ‘zero carbon’ regulations.

Vaughan Houldsworth, Tax Partner at Naylor Wintersgill, commented,

‘Households are currently responsible for around a quarter of the UK’s total carbon emissions and this move is primarily designed to encourage house builders to construct environmentally friendly homes. A landlord intending to acquire a portfolio of properties with a view to letting will soon be able to do so with no SDLT cost.’