From 8 July until 31 March 2020, the SDLT 0% band has been increased from £125,000 up to £500,000. Thereafter the old rates apply. Therefore, if buying at £500,000 you now pay no SDLT at all. Previously this would mean paying £10,000 in tax.
The same saving applies when buying at more than £500,000.
Investors buying residential property still have to pay the additional rate of 3%, but there is still a substantial saving for them.
This will stimulate the residential property market as intended. However, this is a temporary step and it waits to be seen how this will affect the property market from April 2021 onwards.
Originally published by Veale Wasbrough Vizards, July 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
