In a bid to boost the housing market, the Chancellor has introduced temporary changes to reduce the SDLT payable on dwellings in England and Northern Ireland. The changes benefit individuals and companies alike and will allow most purchasers to avoid SDLT on purchases up to £500,000.
The temporary rates of SDLT take immediate effect and apply to house purchases completing on or after 8 July 2020. The temporary rates will remain in place until 31 March 2021, after which rates will revert to the rates that were in place prior to 8 July 2020.
The temporary rates effectively replace first time buyers relief but are not limited to those buying their first home. In fact, the saving is not restricted to those who are purchasing their own home as equivalent reductions are also available to companies and individuals who are buying as landlords.
The new rates are as follows:
Individuals buying their only dwelling or replacing their main residence
Companies and individuals not falling within the rates above
Note, there is no change to the flat rate of 15% that applies when companies buy high value dwellings that do not fall within a prescribed relief.