The Chancellor’s announcement regarding Stamp Duty Land Tax (SDLT) will provide a welcome boost for home buyers and the housing market more generally.
The Treasury says nine out of 10 people getting on or moving up the property ladder (or downsizing) this year will pay no stamp duty as a result.
The effect of the announcement is that the “nil rate band” for SDLT has increased from £125,000 to £500,000 for residential property, which means that such property can be acquired for up to this sum without triggering any SDLT liability.
Taxpayers should be aware however that the change applies only to residential property (and not commercial property) and the rules concerning higher rates for additional dwellings will continue to apply (but with the 3% rate available to £500,000).
The measure applies to transactions that are completed or substantially performed between 8 July 2020 and 31 March 2021 inclusive. The temporary rates do not apply where the transaction was substantially performed before 8 July 2020. This page on GOV.UK contains more information
The changes are in place for the period between 8 July 2020 and 31 March 2021 and so this is very much a temporary measure and there is no suggestion that the Government will look to extend beyond this date. Therefore, whilst this is clearly a welcome announcement, it should be viewed as an emergency measure without any longer term impact for the SDLT regime.
If you would like more information on the SDLT changes, please get in touch.
TLT secures hat trick of nominations for Scottish Legal AwardsRead more
Granting an Assured Shorthold Tenancy: Guide to getting it rightRead more
Break clause: removing 'too much' not fatal to vacant possession...Read more
Covid-19: what enforcement options does a landlord have?Read more
Energy partnerships are the key to sustainability | Social housing...Read more
Evolving Cities - is retail and leisure regeneration the key to...Read more
Commercial rent moratorium extended: initial reactionRead more
Affordable Homes Programme: 2021- 2026 details and model leases...Read more
Partnership opportunities | Social housing series part 2Read more
The pandemic has forced the majority of the workforce into a world of remote working. As a result, our cities are evolving.Read more
Issues that will impact the sector over the coming months - from future proofing social housing developments to managing offices post pandemic, green finance, and creating connected communities.Read more
Watch our video series for information on the legal issues that are affecting the real estate sector. Each...Read more
Helping you navigate your business through the risks and opportunities that Brexit will bring.Read more
The way people shop is constantly evolving, from the growth of online and the changing use of stores...Read more
The widespread disruption and closure of businesses caused by the Covid-19 pandemic and the subsequent national and local lockdowns has brought into sharp focus the question of available insurance cover for losses under...Read more
The pandemic has had a deep and long-lasting effect on the leisure, food & drink sector, forcing operators to embrace new ways of attracting and servicing customers.Read more
There's a growing demand for retailers to do more to attract the Purple Pound – the collective spending power of disabled shoppers, estimated to be worth around £274bn. We look at the opportunities, the legal issues and...Read more
Green finance is gaining speed, driven by global climate change pressures and the recognition of the vital role which sustainability plays in a resilient financial services sector.Read more
Providing a comprehensive service from development and investment through to asset management and tax.Read more
Our experts deal with all kinds of owner-occupied and buy-to-let properties, country estates, farms, mixed-use and residential portfolios. Many of the transactions we deal with relate to high value properties in central London and across the UK. We also advise on a wide range of residential landlord and tenant issues.Read more
We help businesses and individuals manage their tax risks, working with clients in the UK and internationally.Read more
We advise clients on the issues that arise during a real estate transaction. Our expertise includes VAT and SDLT issues, as well as direct tax implications, such as capital allowances and the construction industry scheme.Read more