Summer Statement 2020 – Stamp Duty Land Tax changes
8 July 2020
As part of a number of measures to alleviate the impact of coronavirus on the economy, the Chancellor has announced a temporary change to the rates of Stamp Duty Land Tax for individuals and companies purchasing residential property in England and Northern Ireland.
If you complete a residential property purchase between 8 July 2020 and 31 March 2021, you will pay 0% on the first £500,000 of value of the property. The new rates will apply whether you are a first time buyer or have previously owned an interest in residential property. The effect of the changes is that most purchases of residential property valued at under £500,000 will pay no SDLT and those purchasing property worth more than this amount will also benefit from substantial tax savings.
The new rates are as follows:
|Property or lease premium or transfer value||SDLT rate|
|up to £500,000||Zero|
|the next £425,000 (the portion 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%|
The 3% higher rate for purchases of additional dwellings applies on top of the revised rates for purchases between 8 July 2020 and 3 March 2021.
If you have any questions about Stamp Duty Land Tax, or would simply like an informal chat with one of our experts, please use the form below to get in contact