In some good news for home buyers, the Chancellor has announced today in his summer statement that the Stamp Duty Land Tax (“SDLT”) threshold for residential property will today be raised from £125,000 to £500,000 until 31 March 2021.
For those looking to move home, now could be the time, as you could make significant savings. There will be no SDLT payable on homes worth up to £500,000 (provided it isn’t an additional property) and corresponding savings for higher priced properties.
It appears that even second home buyers and UK purchasers of additional residential properties who are subject to the +3% higher rate will benefit, with the rate up to £500,000 being just 3%.
The end of this “SDLT holiday” will coincide with the introduction of a 2% SDLT surcharge for non-residents who buy UK residential property. So, if you are not resident in the UK but planning to buy a home here, very significant savings are available if you complete the purchase before 1 April 2021.
The government guidance can be found via the link below:
For more information from our team, please get in touch with your usual Druces contact or speak to: