The chancellor has announced a temporary holiday on Stamp Duty Land Tax (SDLT) on the first £500,000.00 of any purchase of a main residence in England and Northern Ireland. It should be noted that Wales and Scotland have differing property taxation systems.
Stamp Duty, what has changed?
The government has temporarily increased the SDLT threshold to £500,000.00 until 31 March 2021. Anyone purchasing a main residence costing up to this amount will pay no SDLT whatsoever and those purchasing more expensive properties will only pay SDLT on the value above this amount.
What if you have already completed your purchase?
The holiday applies from 8 July and so if you completed the purchase before this date you will have to pay the full SDLT.
What if you exchanged contracts before the 8 July and completion took place after?
SDLT is payable upon completion and so as long as completion took place on or after 8 July you will be able to benefit from the changes.
What if you are buying a property that is not going to be your main home?
Anyone who is buying an additional residential property for £40,000.00 or more will pay an additional 3% over the prevailing rates of SDLT. This is known as the 3% Surcharge. The 3% surcharge still applies on top of the new stamp duty holiday rates e.g. you would pay SDLT at 3% of the first £500,000.00.