As a result of the Budget on 3rd March 2021, the current SDLT ‘holiday’ was extended. This was due to come to an end on 31st March 2021 but as a result of the announcement, the SDLT threshold for residential properties will continue to be £500,000 until 30th June 2021. This means that if you buy a residential property before 30th June 2021, there’s no SDLT to pay on the first £500,000 (unless you own other property and are not replacing your main residence).
From the 1st July 2021 until the 30th September 2021, the threshold will be reduced to £250,000, meaning you will not pay SDLT on the first £250,000.
From 1st October 2021 SDLT will become payable under the previous rules, and the threshold will revert to £125,000.
There are different rates of SDLT if you are a first time buyer, or if you already own a property and you’re buying an additional property. The three per cent higher rate for purchases of additional dwellings applies on top of temporary reduced rates.
The extension of the SDLT holiday is fantastic news for purchasers, as savings of up to £15,000 can be made!
In addition, the Chancellor announced a new low deposit mortgage guarantee scheme, meaning 95% mortgages will be available to all buyers of properties costing up to £600,000.
If you are buying or selling your home, we would be happy to assist. For an on-line quote and to find out more, visit our website or call us direct on 01902 313311.