STAMP DUTY LAND TAX TEMPORARY (SDLT) RELIEF UK

July 9, 2020

 

From the 8th July 2020 to the 31st March 2021 inclusive, the UK government has temporarily raised the tax threshold for Stamp Duty Land Tax (SDLT) from £125,000 to £500,000 to help buyers, including first timer buyers, overseas buyers and investors, buy to let investors as well as companies in their purchase of properties in England and Northern Ireland.*

Our property conveyancing team at Chan Neill Solicitors has summarised the temporary SDLT relief for you in a straightforward way.

 

1. SDLT is a standard tax required by the government paid by the buyer when purchasing a residential property in England and Northern Ireland*.

2. SDLT applies to both freehold and leasehold properties, newbuild or existing properties, commercial or residential properties.

3. SDLT is a tiered, threshold system, where the higher the property value, the higher stamp duty you are required to pay.

4. If you or your spouse own more than one property worldwide (have a property registered under your name or your spouse’s name), you pay an additional 3% surcharge on top of the standard rates for SDLT.

 

Purchase of sole property (or replacement of existing main dwelling) SDLT rate

Up to £500,000                                                                                     Zero

The next £425,000 (the portion from £500,001 to

£925,000)                                                                                                  5%

The next £575,000 (the portion from £925,001 to

£1.5 million)                                                                                           10%

The remaining amount (the portion above £1.5

million)                                                                                                    12%

 

 

Purchase of an additional property SDLT rate

Up to £500,000                                                                                         3%

The next £425,000 (the portion from £500,001 to

£925,000)                                                                                                   8%

The next £575,000 (the portion from £925,001 to

£1.5 million)                                                                                            13%

The remaining amount (the portion above £1.5

million)                                                                                                     15%

 

Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

 

At Chan Neill Solicitors we are happy to advise our clients regarding complicated legal and tax issues, purchases, sales and re-financing of properties. We can also advise you on moving money from abroad to the United Kingdom. For any further information please contact us at conveyancing@cnsolicitors.com.

 

* In Scotland buyers pay the Land and Buildings Transaction Tax and in Wales buyers pay Land Transaction Tax.

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Chan Neill Solicitors is a trading name of Chan Neill Solicitors LLP, a limited liability partnership registered in England and Wales, under number OC430320. Chan Neill Solicitors LLP is authorised and regulated by the Solicitors Regulation Authority. SRA number: 668071. We use the word partner to refer to a member of Chan Neill Solicitors LLP, or an employee or consultant who is a lawyer with equivalent standing and qualification. A list of members names together with a list of non members who are designated as partners is available for inspection at our registered office at 107 Charterhouse Street, London, EC1M 6HW