In July 2020 the Stamp Duty Holiday was introduced. Residential property transactions saw an increase in the 0% SDLT nil rate band from £125,000 to £500,000. As such the first £500,000 of a transaction was subject to 0% SDLT giving savings to home buyers of up to £15,000.
The Chancellor today announced that the stamp duty land tax ‘holiday’ will be extended by another three months as part of measures ‘to turn generation rent into generation buy’.
Delivering his Budget statement in the Commons this lunchtime, the Chancellor of the Exchequer said the stamp duty holiday will now end on 30 June instead of 31 March.
As such the first £500,000 of a transaction is subject to 0% SDLT, thereafter the original rates continue to apply.
From 1st July to ‘smooth the transition back to normal’, the nil rate band will be £250,000 – double its standard level – until the end of September. The nil rate band will return to the usual level of £125,000 from 1 October.
As before the “additional homes” surcharge of 3% continues to apply.
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