RESIDENTIAL RATES ON PURCHASES FROM 8 JULY 2020 TO 31 MARCH 2021

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If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

 

You can use the table to work out the SDLT due:

 

  • Property or lease premium or transfer value SDLT rate
  • Up to £500,000 Zero
  • The next £425,000 (the portion from £500,001 to £925,000) 5%
  • The next £575,000 (the portion from £925,001 to £1.5 million) 10%
  • The remaining amount (the portion above £1.5 million) 12%

 

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates for additional properties

 

Higher rates for additional properties

 

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

 

The following rates apply:

 

  • Property or lease premium or transfer value             SDLT rate
  • Up to £500,000 3%
  • The next £425,000 (the portion from £500,001 to £925,000) 8%
  • The next £575,000 (the portion from £925,001 to £1.5 million) 13%
  • The remaining amount (the portion above £1.5 million) 15%

 

New leasehold sales and transfers

 

The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021.

 

The following rates will apply:

 

  • Net Present Value of any Rent SDLT rate
  • Up to £500,000 Zero
  • Over £500,000 1%

 

Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

 

On the 1 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.

 

As outlined above we will keep you up to date with these and other measures as the Government releases further details. Please talk to us if you need any help during this time.

 

More articles on financial support during Covid 19 for businesses

 

The Rawcliffe & Co team is available via phone or email Monday to Thursday 9-5pm and 9 – 4:30pm on Fridays.

 

Tel: 01253 798812
Email: info@rawcliffeco.com