SDLT Holiday Extension

SDLT Holiday Extension

The SDLT holiday announced in July 2020 has been extended past the initial deadline of 31st March 2021 for a further three months. The extension means that anyone purchasing a property to use as their main residence will not be liable to pay any SDLT up to the value of £500,000.00 until 30th June 2021. Purchasers now have an additional three months to benefit from significant SDLT savings on a property purchase as the previous threshold sat at £125,000.00.

Property purchases until 30th June 2021

Property or lease premium or transfer value SDLT rate
Up to £500,000 - Zero
The next £425,000 (the portion from £500,001 to £925,000) - 5%
The next £575,000 (the portion from £925,001 to £1.5 million) - 10%
The remaining amount (the portion above £1.5 million) - 12%

www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

Furthermore, the Government have announced a tapering off process will be implemented from 1st July to 30th September allowing SDLT savings to continue until 1st October 2021.

Property purchases from 1 July 2021 to 30 September 2021

The SDLT thresholds will be:

• £250,000 for residential properties
• £150,000 for non-residential land and properties

The threshold for residential properties will change on 1 October 2021.

Property purchases from 1 October 2021

The SDLT thresholds will be:

• £125,000 for residential properties
• £150,000 for non-residential land and properties

These thresholds are the same as they were before 8 July 2020.

It is important to note the higher rate of SDLT for additional homes will remain in place. Anyone purchasing a buy to let property, second home or holiday home will still be subject to the higher rate of 3% SDLT.

If you are thinking of moving house, please contact our residential conveyancing department at Davidson McDonnell Residential by email nikkki.bell@davidsonmcdonnell.com or by telephone 02890 999 530 and we would be happy to discuss any queries you may have.


Back to Headlines