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How will the Stamp Duty Holiday Affect You?
On 8th July 2020, the Chancellor Of The Exchequer announced that Stamp Duty Land Tax
(SDLT) would be temporarily reduced with immediate effect until 31st March 2020.
Under the new rules, the following changes have been implemented:
1. Residential purchases (meaning the purchase of a first home or a replacement main
residence to live in) will be exempt from SDLT up to a sum of £500,000.00.
If you are purchasing in excess of £500,000.00, the following charges will apply:
| Portion of the purchase price between £500,000.00 and £925,000.00 | 5% SDLT payable |
| Portion of the purchase price between £925,000.00 and £1,500,000.00 | 10% SDLT payable |
| Portion of the purchase price above £1,500,000.00 | 12% SDLT payable |
2. Additional residential purchases (applicable to investors, Company purchases, and
those who own property in other countries) will still be subject to a 3% surcharge. This
includes the purchase of second properties.
However, as this is now charged up to the first £500,000.00 of the purchase price,
purchasers will still benefit from a saving under the new rules.
The other bands are as follows:
| Portion of the purchase price between £500,000.00 and £925,000.00 | 8% SDLT payable |
| Portion of the purchase price between £925,000.00 and £1,500,000.00 | 13% SDLT payable |
| Portion of the purchase price above £1,500,000.00 | 15% SDLT payable |
In any event, the introduction of this Stamp Duty Holiday will no doubt have a positive impact
on the housing market during these unprecedented times.
If you require any further guidance regarding the new rules – or wish to appoint a Solicitor to
act for you in your Conveyancing transaction – please contact the Residential Property Team.