Planning on buying a property? Now may be the time.
NICK GILES, Tax Consultant at Page Kirk, provides some detail on the stamp duty changes announced by Rishi Sunak last week.
The Chancellor's 'mini-budget' on 8 July contained some welcome news for home buyers. From that date until 31 March 2021, the stamp duty land tax (SDLT) rates for residential properties have been reduced, so that SDLT will no longer be payable on purchases of up to £500,000.
The new rates that apply are:
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Property or lease premium or transfer value
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SDLT rate
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Up to £500,000
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Zero
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The next £425,000 (the portion from £500,001 to £925,000)
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5%
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The next £575,000 (the portion from £925,001 to £1.5 million)
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10%
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The remaining amount (the portion above £1.5 million)
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12%
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The new rates will mean that buyers will save £15,000 when purchasing a property worth £500,000.
The special rules in place for first time buyers have been temporarily replaced by the new rates.
The additional 3% surcharge on second homes remains in force but individuals will continue to have up to 36 months to reclaim the additional rate SDLT paid on any second property that replaces their main residence.
Companies, as well as individuals, will benefit from the new rates, but the 3% surcharge continues to apply to all purchases of residential property.
If you would like any more information or to find out how we can help, please contact us by calling 0115 955 5500 or email enquiries@pagekirk.co.uk.