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Fri 26 Mar 2021
Due to the coronavirus pandemic, the housing market was largely put on hold between 26 March 2020 and 13 May 2020, and after that period there continued to be reduced activity in the UK housing market when compared with the period before lockdown. In response to this, on 8 July 2020 the Chancellor announced a temporary increase to the amount a purchaser could pay for residential property before Stamp Duty Land Tax (SDLT) was due, from £125,000 to £500,000, for the period 8 July 2020 to 31 March 2021. Buy-to-Let investors only partially benefited from the SDLT holiday as they remained subject to the 3% SDLT Surcharge.
As it become clear to Government that their planned ‘cliff-edge’ approach to planned reintroduction of SDLT to normal levels would most likely deliver negative repercussions to the house market the Chancellor has introduced a staged withdrawal by:
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Extending to 30 June 2021 the nil rate band of £500,000, which was due to end on 31 March 2021
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Introducing a nil rate band of £250,000 for the period 1 July 2021 to 30 September 2021
It should be noted that:
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The SDLT surcharge remains at 3% for BTL investors
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Effective 01/04/2021 a new SDLT surcharge is introduced for foriegn national buying housing, this cost is in addition to the existing 3% surcharge for second home ownership.
Martin Cunningham - Sales & Auctions Director
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