Guidance released: Stamp duty land tax holiday
Further detail is now available relating to the Stamp Duty Land Tax (SDLT) holiday following the government announcement yesterday.
Key points are:
- The reduced rates of SDLT will apply to residential properties purchased from 8 July 2020 until 31 March 2021 inclusive;
- The reduced rates apply whether you are buying your first home or have owned a property previously;
The reduced rates are as follows:
If you are wondering what the rates are for additional purchases, the higher rate of 3% for purchases of additional dwellings applies on top of revised standard rates for the same period as follows:
Clarification has at least meant that buyers are clear on what the applicable rates of SDLT are now.
The Rents payable for residential property will also benefit as the nil rate band value increases to £500,000 for the same period.
The following rates will apply:
It is not just individuals who can take advantage as companies buying residential property worth less than £500,000 will also benefit, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.
On the 1 April 2021 the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to 8 July 2020.
If you have any queries on SDLT or any related issues, please get in touch.
This update is for general purposes and guidance only and does not constitute legal or professional advice. You should seek legal advice before relying on its content. For advice, get in touch with your usual Greenwoods GRM contact or scroll down to complete our enquiry form.