Land and Property measures including Stamp Duty Land Tax (SDLT),  Annual Tax on Enveloped Dwellings (ATED) and Business Rates included in Budget 2021 are as follows:

SDLT nil rate band

  • The SDLT nil rate band threshold was increased to £500,000 from 8 July 2020 until 31 March 2021. This threshold now extends three months until 30 June 2021.
  • From 1 July 2021 the nil rate band reduces to £250,000 until 30 September 2021, before returning to its permanent level of £125,000 from 1 October 2021.

SDLT Freeports

  • SDLT relief for purchases of land and buildings within a Freeport tax site, subject to a ‘control period’ of up to three years and the land being acquired and used in a ‘qualifying manner’.

SDLT Non-resident surcharge

  • As previously announced, from 1 April 2021 Non-UK residents will be subject to an additional 2% Stamp Duty Land Tax (SDLT) surcharge on the acquisition of UK residential property.

Annual Tax on Enveloped Dwellings (ATED)

  • New reliefs from ATED and the 15% rate of SDLT for certain qualifying housing co-operative come into effect on 3 March 2021.

Business Rates

  • A 100% business rates discount to businesses occupying eligible retail, hospitality and leisure properties and nurseries in England for 3 months from 1 April 2021.
  • For the remainder of the financial year, these properties will receive a 66% discount with a cap of £2 million per business for those that were required to close as at 5 January 2021 and a cap of £105,000 per business for those that were not required to close.
  • Businesses who do not feel that they were impacted by COVID-19 or who are altruistic can choose to opt-out of the relief

Useful guides on this topic

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

Budget 2021: At a glance
A summary key budget announcements together with items published without announcement.

SDLT Rates & Allowances
What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?

Non-Residents' SDLT
An additional 2% Stamp Duty Land Tax (SDLT) surcharge

Annual Tax on Enveloped Dwellings (ATED)
What is ATED?  When does ATED apply?  What relief is available and how is it claimed?  What are the ATED filing requirements?

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