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Keeping up with the Stamp Duty changes

Posted on March 4th 2021

Stamp Duty Land Tax (SDLT) relates to the property tax due on certain property transactions in England and Northern Ireland.

Due to the effects of Covid-19 and in an attempt to support the property market, from 8th July 2020 there was a temporary suspension of SDLT for properties under £500,000.

Yesterday (3rd March 2021) Chancellor Rishi Sunak announced that the SDLT relief is to continue until 30 June 2021 with a staggered reduction in the zero-rate band.

 

What does this mean for me?

Completion date Zero rate band SDLT payable
From now until 30th June 2021 <£500k:

No SDLT payable on properties up to £500k

5% payable on £500,001 – £925,000

10% payable on £925,001 – £1.5 million

12% payable on £1,500,001 +

1st July 2021 until 30th September 2021 <£250k:

No SDLT payable on properties up to £250k

5% payable on £250,001 – £925,000

10% payable on £925,001 – £1.5 million

12% payable on £1,500,001 +

From 1st October 2021 <125k:

No SDLT payable on properties up to  £125k

2% payable on £125,001 – £250,001

5% payable on £250,001 – £925,000

10% payable on £925,001 – £1.5 million

12% payable on £1,500,001 +

*Note that the above relates to residential properties only for single property owners.

First Time Buyers relief

For first time buyers, there remains SDLT relief for those purchasing under £300k,with 5% payable on the sum between £300,001 – £500,000. First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

There is no date on which this is set to change.

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