Residential Property ' Budget Update, March 2021

• Published date: 13 March 2021
• Subject Matter: Real Estate and Construction, Conveyancing, Real Estate
• Law Firm: Cleaver Fulton Rankin
• Author: Ms Nemonie Fulton

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

From 8^th 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 1^st July 2021 to 30^th 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...