Previously in England and Northern Ireland the nil-rate band for stamp duty land tax (SDLT) was £125,000. The government announced on the 8th July 2020 that it has now increased this to £500,000. This temporary reduction came into immediate effect until 31 March 2021.
This applies to buyers owning no other residential property, neither in the UK or worldwide. In this case second home surcharges rates will apply, please see the below table.
The complete temporary rates are:-
£500,001 – £925,000 5%
£925,001 – £1,500,000 10%
Second home surcharge 3%
It is hoped that the above reductions will be a positive incentive especially for international buyers who if looking to purchase in the United Kingdom should do so before April of next year so as they can benefit not only from the above, but also avoid the additional 2% surcharge intended to be introduced for non-resident buyers.
If you are either selling or buying a property in England or Northern Ireland and would like to discuss how the above or any other aspects could affect you please do not hesitate to contact us.