Temporary Stamp Duty Land Tax Reductions
To help the UK economy recover from the Coronavirus pandemic, the Chancellor, Rishi Sunak, has announced a temporary reduction in Stamp Duty Land Tax rates to take effect from 8th July 2020. This reduction in SDLT rates will last until 31st of March 2021 and will be welcomed by the property market.
The reduction applies to residential properties and whether the property you are purchasing will be your home or an additional property. The rates will apply whether you are a first-time buyer or have owned a property before.
We can provide details of the SDLT rates payable on your particular transaction but two examples are set out below:
Example 1 Mr and Mrs Smith purchase a freehold property for £475,000 to be occupied as their home. They own no other properties. They complete the purchase on 1st September 2020. SDLT payable on the transaction is zero, a saving of £13,750 compared with what they would have paid if Mr and Mrs Smith had completed their purchase before 8th July 2020 or after 31st March 2021.
Example 2 Joe Bloggs purchases a buy-to-let property, completing on 1st September 2020 for £275,000. As a result of this purchase he owns two or more properties. SDLT payable on this transaction is £8250, a saving of £3750 compared with what would have been due if he were to complete his purchase before 8th July 2020 or after 31st March 2021.
For specialist advice on moving home or buying or selling an investment property, please contact any member of the Property Services team at Gardner Croft, the Canterbury Law Firm.
Written by Tim Townsend, July 8th 2020.