Residential Rates on purchases from 8 July 2020 to 31 March 2021

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay Stamp Duty Land Tax (SDLT) on the amount that you pay for the property above £500,000. These rates apply for both First Time Buyers and experienced home owners.

The table below shows the amounts due:

From 8 July 2020 to 31 March 2021 the rules for first time buyers are replaced by the reduced rates set out above.

 

Higher rates for additional properties will still exist

The 3% higher rate for purchases of additional properties applies on top of the revised rates shown above for the same period.

The table below shows the amounts due:

 

New leasehold sales and transfers

The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021.

 

The table below shows the rates that will apply:

Companies as well as individuals buying residential properties worth less than £500,000 will also benefit from the changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

On the 1 April 2021 the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to 8 July 2020.

Garner Canning will continue to provide quotes that include the original rate of SDLT in case the completion falls outside of the relief period. We shall advise our clients throughout the transaction of the level of SDLT liability for their proposed date of completion.