Thompson Smith and Puxon Residential Property Lawyer, Laura Finnigan, updates us on the recent changes to Stamp Duty Land Tax (SDLT).
On the 8 July 2020 the Chancellor announced a ‘Stamp Duty Holiday’ on the first £500,000 of all property sales with immediate effect.
Anyone completing on a main residence costing up to £500,000 between 8 July 2020 and the 31 March 2021 will not pay any stamp duty and more expensive properties will only be taxed above that amount.
The temporary raise in tax threshold has been bought in to boost the property market and help buyers struggling because of the Covid-19 pandemic. The new temporary rates can be found below.
|Up to £500,000||0%|
|£500,0001 to £925,000||5%|
|£925,0001 to £1.5 million||10%|
|£1.5 million +||12%|
If you are looking to buy additional property’s the 3% higher tax rate applies on top of the revised rates and will be in place until 31 March 2021. The new temporary rates for additional properties can be found below.
|Up to £500,000||3%|
|£500,0001 to £925,000||8%|
|£925,0001 to £1.5 million||13%|
|£1.5 million +||15%|
A calculator is available on the gov.uk website here which calculates the amount of SDLT due on purchases of main and additional residential properties.
For general advice in relation to any residential property matters, including SDLT, please contact Laura Finnigan at Thompson Smith and Puxon on 01206 217 020 or by email at firstname.lastname@example.org.