The Chancellor of the Exchequer, Rishi Sunak, presented his ‘Plan for Jobs’ to Parliament on Wednesday 8 July 2020 to outline how the government will boost job creation in the UK.
The speculation and rumours were true as a temporary Stamp Duty Land Tax (“SDLT”) holiday was announced. It started immediately covering the period from 8 July 2020 until 31 March 2021 inclusive.
The holiday means that purchasers of residential properties can significantly reduce their liabilities by up to £15,000. The most significant change is no SDLT is chargeable on purchases up to £500,000 and the special rules for first time
buyers are replaced by the rates below.
The temporary SDLT rates are:
| Property or lease premium or transfer value | SDLT rate |
| Up to £500,000 | 0% |
| The next £425,000 | 5% |
| The next £575,000 | 10% |
| The remaining amount | 12% |
The changes are applicable for all purchasers of residential property, including companies and if the purchase is a second home. The 3% surcharge is still applicable at each of the new banding levels:
| Property or lease premium or transfer value | SDLT rate |
| Up to £500,000 | 3% |
| The next £425,000 | 8% |
| The next £575,000 | 13% |
| The remaining amount | 15% |
The tax savings will apply to properties which are eligible for residential reliefs. SDLT is a specialist area and advice should always be obtained before submitting a claim. Hillier Hopkins LLP have extensive experience here and can assist
with determining if your purchase qualifies for a valuable relief and whether the claim will be successful. If you are unsure about an upcoming purchase please contact our expert below.
Here are some useful links:
Stamp Duty Land Tax (SDLT) saving opportunities
Stamp Duty Land Tax (“SDLT”) arises on most property transactions but have you considered whether you have paid the correct amount of tax? We have seen a number of clients overpaying SDLT as they were unaware that their recent property purchase qualified for a relief. Find out more…
Stamp Duty Land Tax (SDLT): Q&A
Our Q&A relate to the purchase of residential properties by individuals and are ones we answer on a daily basis. To see the most frequently asked questions click here.
