Good news from the UK Government enliven the real estate trade. The increase of the SDLT nil-rate band extended to 30 September 2021. It means no tax on the first £500,000 of property purchases in England and Northern Ireland until 30 June. It has been confirmed in the State’s Budget by Chancellor Rishi Sunak.
The Government will keep the stamp duty exemption at double its standard level (£250,000) until the end of September and then return to its current level (£125,000) from 1 October.
The effective date of a land transaction usually is the date of completion. When there is substantial performance before completion, the effective date is the date of this enactment. In such a case, there is an expectation for a second transaction on the date of completion. To ensure that no additional tax is due on completions after the SDLT holiday ends, the Government will adopt special legislation.
The further extension of the £500,000 nil-rate band period and the introduction of the intermediate £250,000 nil-rate band are also to apply to the rents under a new lease of residential property. However, these changes, like the original relief, do not extend to commercial or mixed property.
First-Time Buyers’ Relief will remain suspended until 30 June 2021 but come into effect again on 1 July 2021.
Stamp duty land tax applies to property in England and Northern Ireland only. Neither the Scottish Government nor the Welsh Government has yet announced their plans to extend the temporary relief.
SDLT holiday extension provides an additional window of opportunity to save thousands of pounds for residential property buyers in the United Kingdom.
ORACLE CAPITAL GROUP is an investment and real estate development consultancy specialising in residential and commercial property projects.