The Chancellor announced as part of his summer Statement, a Stamp Duty Land Tax (SDLT) holiday in respect of the first £500,000 for residential properties purchased between 8 July 2020 and 31 March 2021. This holiday revises the existing SDLT bands for the normal rates of SDLT, the lease provisions and also for the higher rates of SDLT (3% surcharge), as set out below.
In most cases, the trigger/effective date for SDLT will be the completion date of the property acquisition. Although this can be varied if occupation or significant consideration has been paid. For transactions after this date, the existing rates will be reinstated.
This holiday is available to all purchasers of residential property, including companies, and will be seen as a key boost to opening back up the residential market. For residential purchases before 31 March 2021, this will mean a saving of up to £15,000. With a cliff edge date of 31 March 2021 expected to see more activity immediately prior to this period. The remaining question will be whether a holiday of eight months will be sufficient to improve the long term residential market. Many within the property sector have been campaigning for reducing the rates as well as the complexity of this tax on a permanent basis, but this holiday is a step in the right direction.
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