The Chancellor announced today that residential property transactions costing up to £500,000 will be exempt from stamp duty land tax (SDLT) until 31 March 2021. 

The announcement today confirms that there will be a suspension of Stamp Duty Land Tax on purchase value to £500,000 with rates of tax coming into play for values above that initial threshold.  This is fantastic news for first time buyers and a large sector of the property market, offering significant savings to buyers whilst creating a much needed boost to the wider market. 

However, a lot of the media coverage today states this suspension applies to all properties – as ever though with Government announcements, the Devil is sometimes in the detail.  Whilst this temporary suspension up to £500,000 does apply to purchases of main homes, there are still different rules for second homes and investment properties.  Stamp Duty Land Tax here will be levied at 3% on the first £500,000 and then stepped bands of increasing rates after that.

The HMRC have updated their website today with their initial guidance on the changes https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates and no doubt further details and guidance will follow to help us all understand better over the coming days how this relief will play out in practice.

We are here to help and to give advice where we can, please just get in touch: lawyer@wbw.co.uk or 01626 202404.