Stamp Duty
The Chancellor announced that he will enforce temporary reductions in residential property Stamp Duty Land Tax Rates (SDLT) between 8th July 2020 – 31st March 2021, which is of great benefit to those currently looking to get onto the property ladder or purchase a new property. You will only pay SDLT on the amount that you pay for the property above £500,000. This rate applies to both first time buyers and existing homeowners. The temporary SDLT rates are:
| Property or lease premium or transfer value | SDLT Rate |
| Up to £500,000 | Zero |
| The next £425,000 (Costing £500,001 to £925,000) | 5% |
| The next £575,000 (Costing £925,001 to £1.5 million) | 10% |
| The remaining amount (Costing above £1.5 million) | 12% |
The existing rules for first time buyers are temporarily replaced by the reduced rates shown above.
If purchasing an additional property, there is a 3% higher rate, which applies on top of the above rates. For example, on a buy-to-let or second home, the temporary rates become:
| Property or lease premium or transfer value | SDLT Rate |
| Up to £500,000 | 3% |
| The next £425,000 (Costing £500,001 to £925,000) | 8% |
| The next £575,000 (Costing £925,001 to £1.5 million) | 13% |
| The remaining amount (Costing above £1.5 million) | 15% |
Businesses buying residential property worth less than £500,000 will also benefit from these changes at the additional 3% SDLT rate.
As of the 1st April 2021, the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to 8 July 2020.
For further details on the SDLT temporary changes click here:
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
Green Homes Grant
The Government has set aside £2 billion for homeowners in England to make green home upgrades. Homeowners in England will be able to apply for vouchers from the The Green Homes Grant scheme, to pay for improvements such as loft, wall and floor insulation. This could save some households hundreds of pounds a year on their energy bills and create thousands of jobs for tradespeople. This is aimed to help to boost home efficiencies.
The Government has not yet announced a timescale for this scheme.
(E) enquiries@advaloremgroup.uk (T) 01908 219100
