From 8 July 2020 to 31 March 2021 HMRC has given purchasers an opportunity to complete a residential purchase transaction and pay either no Stamp Duty Land Tax (SDLT) or a reduced amount of SDLT depending on your home ownership status and property value.

The HMRC changes in relation to SDLT, affect all of the following home owner scenarios in which SDLT would have been previously payable:-

  1. First time buyer – starting value at which SDLT is now payable increases to £500,000.00
  2. Previous home owner, replacing their main residence with a new main residence – starting value at which SDLT is now payable increases to £500,000.00
  3. Home owner who will own two or more properties when they complete their purchase and are not replacing their main residence – 3% starting higher rate SDLT now payable on values up to £500,000.00 followed by standard higher rate tax brackets from £500,001.00 upwards

For further information on the relevant rates please see:  https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

This article has been produced for general information purposes and further advice should be sought from a professional adviser. For information on how the SDLT holiday will affect you when purchasing a residential property in Northern Ireland please contact a member of the Residential Property team.