Residential Property ' Budget Update, March 2021

Publication Date13 March 2021
SubjectReal Estate and Construction, Conveyancing, Real Estate
Law FirmCleaver Fulton Rankin
AuthorMs Nemonie Fulton

The Chancellor has announced the extension of the Stamp Duty Land Tax holiday (SDLT) for purchases up to '500,000 until the 30th June 2021. This is welcome news.

From 8th July 2020, a nil rate band for SDLT for residential property transactions has been in place for the following scenarios:

  1. If you are a first time buyer the starting value at which SDLT is payable is '500,000;
  2. If you are a previous home owner, replacing your main residence with a new main residence the starting value at which SDLT is payable is '500,000;
  3. If you are a home owner who will own two or more properties when you complete your purchase and you are not replacing your main residence, you will pay a 3% starting higher rate SDLT on values up to '500,000.00 followed by standard higher rate tax brackets from '500,001.00 upwards.

The extension of the SDLT holiday until the end of June 2021 will provide a considerable degree of relief for purchasers who wished to complete before the original deadline of 31 March 2021.

However, from 1st July 2021 to 30th September 2021, purchasers should be aware that the nil rate band for SDLT will be reduced to '250,000 and following this, the original nil...

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