As announced in the Mini Budget by the Chancellor yesterday, if you purchase a residential property between 8 July 2020 and 31 March 2021, you will now only start paying SDLT on the value of the purchase price which exceeds the £500,000 threshold. The threshold for 0% SDLT was previously £125,000. These changes apply to first time buyers and those who have previously purchased property alike, with the rules for first time buyers now being replaced by the new rates.
Where you are purchasing an additional property between 8 July 2020 and 31 March 2021, the additional 3% rate will continue to apply.
With leasehold sales and transfers, the nil rate band applying to the net present value of rents is also now increased to £500,000. For such sales and transfers, where the net present value of any rent is up to £500,000 there will be no SDLT payable and where a portion of the net present value of rent exceeds £500,000 the SDLT rate on this portion will be 1% until 31 March 2021.
The aim of the SDLT cuts is to stimulate the UK housing market by decreasing the cost of a residential property purchase for buyers.
If you are purchasing a residential property and need assistance, or require assistance with any other property matters, please contact Tom Bessant at email@example.com or call us on 01722 412000.