The chancellor has announced that the rates of Stamp Duty Land Tax (‘SDLT’) were reduced from 8 July 2020 and will remain reduced until 31 March 2021. So, if you are contemplating your next property purchase, the reduction in SDLT is a good reason to progress with your purchase in the coming months.

The new scale rates to apply from yesterday are as follows: 

As you have seen from the above, the actual rates of SDLT remain unchanged (although the 2% slice is now not applicable), but the change is with the shifting of the property value bands. The resetting of the SDLT bands will be welcome relief for property purchasers.

Note that the higher rates of SDLT for additional properties still apply. So, if the residential property acquisition is not going to be your home, your rates will probably be 3% higher than those stated above.

Whilst the 3% additional rate will still apply to other purchasers, landlords will have been subject to the additional 3% in any event. Given that landlords have been subject to less favourable tax treatment in recent years, yesterday’s announcement is a pleasant surprise – it is the first tax break given to landlords for many years.

If you are in the process of purchasing a property worth £500,000 (a convenient price for illustrative purposes) the tax saving will be £15,000 (even for landlords). The tax saving is no small change and will boast buyer’s wallets for house upgrades or even a celebration meal.  When having your celebratory meal, do not forget the ‘Eat Out to Help’ scheme whereby a £10 reduction (maximum amount) in the cost of your meal will be applied in a participating restaurant – cheers Rishi!

If you have any questions you can call 01243 782 423 and ask for Shaun Dodson or head to our contact form and he will be in touch!