We were thrilled to hear the Chancellor’s announcement today of an immediate reduction in Stamp Duty Land Tax(SDLT).
The Chancellor has announced a temporary reduction in SDLT .If you purchase a residential property after today and before the 1st April 2021 you will only start to pay SDLT on the amount you pay for the property over £500,000. Up to that figure there will be NO SDLT payable – ZERO! This applies whether it is your first home or if you have owned a residential property before. This is great news for the property market!
These rates replace the previous special rules for first time buyers and they apply to transactions that are completed or substantially performed between 8 July 2020 and 31 March 2021 inclusive. The temporary rates do not apply where the transaction was substantially performed or completed before 8 July 2020. Broadly if you have exchanged but not completed before 8th July you should be able to take advantage of the reduction.
For purchases liable to the Higher Rates for Additional Dwellings, the 3% band is increased from £125,000 to £500,000 so there are savings there as well!
For more information please visit the below link to the government guidance
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
If you would like any more information or any guidance please contact one of our residential team on 01904 624903.
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