Budget 2021: Residential Property SDLT holiday extended

Budget 2021: Residential Property SDLT holiday extended

Mark Stemp, Partner, Private Clients
Budget 2021: Residential Property SDLT holiday extended

More good news was received in the Budget with the extension of the Stamp Duty Land Tax (SDLT) holiday. It was announced that the SDLT nil band is to continue to be extended to £500,000 for the period to 30 June 2021. The extension was initially introduced on 8 July 2020 and is a SDLT saving for those purchasing a property of £500,000 or more, whether as their first home or not of £15,000.

So as to stop the cliff edge change on 30 June, the nil band is to be phased down in stages as set out in the table below. It means that it is phased down to the standard amount of £125,000 on 1 October 2021.  

 Property acquisition date  SDLT band
 8 July 2020 – 30 June 2021  £500,000
 1 July 2021 – 30 September  £250,000
 1 October 2021 onwards  £125,000

For those who are first time buyers, the current nil band means that first time buyer relief is not required however, from 1 July 2021, when the nil band has reduced, first time buyers will need to consider the application of first-time buyer SDLT relief so as to retain the £500,000 nil rate.  

For those who are landlords, the reduction in the nil band is providing an extended window of opportunity as there is a reduced SDLT charge for those looking to grow their rental portfolios. There is also the added benefit of an SDLT saving for those landlords who are considering re-structuring their portfolios by putting their portfolio in to a company. 

Budget 2021

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Rebecca Durrant
Rebecca Durrant
Partner, National Head of Private Clients