Matthew Butcher, Solicitor
29 Apr 2021
As a result of the Covid 19 pandemic, the Chancellor of the Exchequer announced temporary period of reduced rates of Stamp duty Land Tax (SDLT) liability. As was very much publicised in the media, these temporary rates were due to end on 31 March 2021.
In the Spring Budget 2021 It was announced that the Temporary Rates would continue in their current form until 30 June 2021. This means that Stamp Duty Land Tax on properties being purchased for £500,000 and under will have the benefit of a temporary nil rate charge until 30 June 2021. This applies whether the purchase is your first home or if you have owned property before.
For properties purchased between 01 July 2021 and 30 September 2021, the nil rate charge will apply for purchases of £250,000 and below.
The nil rate band will return to the pre-pandemic level of £125,000.00 on 01 October 2021.
Additional property surcharge
It should be noted that the 3% surcharge continues to apply on top of the Temporary Reduced Rates scheme. This would mean that where you buy additional property (eg as an investment) for £500,000 or less during the Temporary Reduced Rates period, you would still be liable to a 3% SDLT charge.
If you would like to discuss this or any conveyancing matter, please do not hesitate to contact one of our specialist solicitors.