9 July 2020 – Stamp duty tax update
The Chancellor has announced a stamp duty holiday for property purchases up to £500,000
Below is a link to the Government’s guidance notes
Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties with a completion date on or after 8 July 2020 – the stamp duty holiday will apply until the cut off date of 31 March 2021.
A purchaser will only pay SDLT on the amount of the purchase price above £500,000
The table below can be used to work out the rates payable:-
|Property or lease premium or transfer value||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%|
IF YOU ARE PURCHASING AN ADDITIONAL PROPERTY AND NOT REPLACING YOUR MAIN RESIDENCE THE 3% SECOND HOME SDLT WILL STILL APPLY TO THE WHOLE OF THE PURCHASE PRICE IN ADDITION TO THE STANDARD SDLT PAYABLE IN THE TABLE ABOVE
THE SDLT HOLIDAY DOES NOT APPLY TO COMMERCIAL PROPERTIES.
8 July 2020 – Stamp duty land tax update
The chancellor has just announced a stamp duty holiday for property purchases up to £500,000 with immediate effect until 31 March 2021.
We currently await further information from the Government with regard to the details of how the scheme will impact on the SDLT liability for our clients.
We will be assessing all cases and will prioritise the purchases that are completing in the immediate future.
We shall update clients once further details are released.