Summer Economic Update - Personal Taxes
Read time: 1 minutes
Paul Ayres - Partner and Head of Private Clients
Recognised by Spears Magazine as one of the Top Ten Tax Accountants in the wealth management industry, Paul has a varied client portfolio including entrepreneurs, entertainers and families both in the UK and globally.
Talk to us
Stamp Duty Land Tax Cut on Residential Property
The Chancellor has announced a temporary ‘nil rate band’ for SDLT on the first £500,000 of the purchase price of residential property in England and Northern Ireland from 8 July 2020 to 31 March 2021.
The current rate bands will apply to the excess over £500,000. This means that the next £425,000 (£500,001 to £925,000) will carry SDLT at 5%, the next £575,000 (£925,001 to £1,500,000) at 10%, and any excess over £1,500,000 at 12%.
If the purchaser is acquiring an additional property (or the purchaser is a company qualifying for relief from the 15% corporate SDLT charge on a residential property over £500,000) the existing additional 3% charge will apply on top of the above figures.
With regard to residential leases granted during this period, the SDLT ‘nil rate band’ applicable to the ‘net present value’ of the rent payable under the lease will increase to £500,000, with a 1% charge on the excess over £500,000.
HMRC has stated that it will be publishing guidance on the impact of the SDLT holiday on linked transactions (presumably including multiple dwellings relief), first time buyers, and shared ownership properties, and will be expanding its brief guidance on leases and the additional 3% charge.