The SDLT Holiday - One Holiday You Don’t Want to Miss!

The SDLT Holiday - One Holiday You Don’t Want to Miss!

The Government’s announcement of a Stamp Duty Land Tax (SDLT) holiday in July 2020 came as welcome news to the property market following the widespread fear that the market would face a pandemic induced downturn.  There is no doubt that the restrictions imposed during lockdown had a significant impact on the housing market.

In a nutshell, the SDLT holiday 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. This significant increase in the SDLT threshold, which previously sat at £125,000.00, will result in potential savings of up to £15,000.00.

There is however only a limited time to avail of these savings, as the SDLT holiday is due to end on 31st March 2021.

It is also worth noting that the higher rate of SDLT for additional homes will continue to apply, therefore if you are purchasing a buy to let, second home or holiday home you will be liable to pay 3% up to the value of £500,000.00.

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

 

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

 

Higher rates for additional properties

Property or lease premium or transfer value SDLT rate
Up to £500,000 3%
The next £425,000 (the portion from £500,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million) 15%

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


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