Stamp Duty Land Tax (SDLT) holiday

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

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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 Natasha Heron on natasha.heron@hhllp.co.uk or Meeten Nathwani on meeten.nathwani@hhllp.co.uk.

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.

Do you need extra information?
Natasha Heron

Natasha is a member of the ICAEW as a qualified auditor and the Chartered Institute of Taxation, specialising in indirect taxes. Natasha has developed a specialism as an adviser on the Stamp Duty Land Tax implications of property transactions.

Contact Natasha at Natasha.Heron@hhllp.co.uk or on 01923 634460