As you may have seen on the news, on Wednesday 8th July the Government announced a temporary increase of the nil rate band of residential stamp duty land tax (SDLT) from £125,000 to £500,000 in England. Unfortunately, a similar relief has not been announced in relation to Land Transaction Tax in Wales.
What does this mean for you?
It means that if you complete a property purchase in England before 31st March 2021 and you own no other property, or you complete your sale and purchase on the same day, the first £500,000 will be taxed at 0%.
The SDLT holiday starts with immediate effect from Wednesday 8th July 2020. The temporary rates for homeowners who only have one property are as follows:
- property value up to £500,000 – 0%
- the next £425,000 (the portion of value from £500,001 to £925,000) – 5%
- the next £575,000 (the portion from £925,001 to £1.5 million) – 10%
- the remaining amount (the portion above £1.5 million) – 12%
If you are purchasing a second property or already have a second home, then within the holiday you can claim a reduced rate of 3% for properties worth up to £500,000.
If you are considering moving house or purchasing your first home, please contact us on 01244 312306 or email law@oliverandco.co.uk for more information.
