The COVID-19 Stamp Duty Land Tax (SDLT) 'holiday' concluded on 30 June 2021. From 1 July, SDLT is payable on the acquisition of residential property costing more than £250,000. All is not lost for First Time Buyer's, they still receive relief and pay no SDLT on the purchase of their first property provided that the consideration is £300,000 or less.
As a result of the pandemic and in order to stimulate house prices, the Chancellor, Rishi Sunak reduced the rate of SDLT applied to the purchase of residential property from 8 July 2020 to 30 June 2021. The result has been to exempts properties costing £500,000 or less from a charge.
The exemption decreases to £250,000 from 1 July 2021 to 30 October 2021 before returning back to pre-pandemic rates of £125,000 from 1 November 2021.
According to the National Office of Statistics, property prices have risen by over 10% during the last year, it remains to be seen whether the end of the SDLT holiday will have any effect on the market.
Useful guides on this topic
SDLT Rates & Allowances
What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?
SDLT: Residential property higher rates
What Stamp Duty Land Tax (SDLT) rate applies for the purchase of a second home? What is the SDLT higher rate? Are there any reliefs from the SDLT higher rate?
SDLT: Residential property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies? What garden and grounds are subject to higher rates of SDLT?
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