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.