A reason to leave the house in COVID times
14 August 2020
Following the Chancellor’s ‘mini-budget’ in July, individuals replacing their main residential property between 8 July 2020 and 31 March 2021, will only pay Stamp Duty Land Tax (SDLT) on purchases over the value of £500,000. This rate applies whether you are a first time buyer or not. It does not, however, apply where an individual is purchasing a second home or a buy-to-let property.
It is important to note however that the normal rates of SDLT will apply to any part of the price paid above £500,000 as per the table below:
As with most things, the devil is in the detail. Key points to note:
- On 1 April 2021 the reduced rates will revert to the rates of SDLT that were in place prior to 8 July 2020.
- The maximum saving for a transaction involving one dwelling is £15,000.
- Companies purchasing residential property will still be liable to the usual surcharge payable.
- The surcharge also applies in respect of second homes.
- Further information can be found in HMRC’s guidance at: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
The SDLT holiday is a welcome boost for the NI economy during a time of so much uncertainty. For further information on the above or residential purchases generally, please contact the Real Estate team at Carson McDowell.
*Please note that this information is for guidance purposes only and does not constitute, nor should be regarded as, a substitute for taking legal advice that is tailored to your particular circumstances.