Information from The Law Society about the temporary stamp duty holiday which was announced yesterday by Chancellor Rishi Sunak.
“Today the Chancellor of the Exchequer, Rishi Sunak MP, has announced temporary increases to the Stamp Duty Land Tax nil rate bands for residential property to take effect immediately and remain in effect until 31 March 2021. Transaction volumes were significantly down during lockdown and June saw negative annual house price growth for the first time since 2012.
Noting that property transactions fell by 50% in May, and that uncertainty continues to affect the housing market, the Chancellor announced that the property value at which Stamp Duty Land Tax (SDLT) begins to be paid will be raised from £125,000 at present to £500,000 in the tables covering standard purchases and purchases where the consideration consists of or includes the net present value of the rental element for leasehold acquisitions.
For purchases liable to the Higher Rates for Additional Dwellings, the 3% band is increased from £125,000 to £500,000.
The measure applies to transactions that are completed or substantially performed between 8 July 2020 and 31 March 2021 inclusive. The temporary rates do not apply where the transaction was substantially performed before 8 July 2020.”
For more detailed information here is a link to the government website which contains more detailed information – https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates.