At least stamp duty is getting a holiday this summer...
The Chancellor yesterday confirmed a temporary reduction in SDLT on residential properties. As always the 'devil is in the detail', but it is safe to say that there will be a saving on all normal residential transactions. This applies to residential property purchased from 8 July 2020 until 31 March 2021 inclusive - presumably “substantial performance” will be the trigger. Essentially, for a purchase of residential property in this period, SDLT is only payable on the amount paid for the property above £500,000. This is an increase from the previous nil-rate band of up to £125,000, where a purchaser did not own any additional residential property. These rates apply whether you are buying your first home or have owned property before (effectively overriding first time buyer's relief for this period).NB this also applies to residential leasehold transactions where the zero-rate applies for NPV of rent up to £500k.
The residential rates of SDLT for purchases from 8 July 2020 to 31 March 2021 are as follows:
| Consideration | SDLT rate | ||||||||||
| Up to £500,000 | Zero | ||||||||||
| The next £425,000 (the portion from £500,001 to £925,000) | 5% | ||||||||||
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% | ||||||||||
| The remaining amount (the portion above £1.5 million) | 12%The higher rates of SDLT for purchases of additional residential property have also been updated as follows:
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The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.