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:

1. On 1 April 2021 the reduced rates will revert to the rates of SDLT that were in place prior to 8 July 2020.
2. The maximum saving for a transaction involving one dwelling is £15,000.
3. Companies purchasing residential property will still be liable to the usual surcharge payable.
4. The surcharge also applies in respect of second homes.
5. 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.

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