Bishop Fleming's experts have a deep understanding of both the residential and commercial property development markets
Bishop Fleming's experts have a deep understanding of both the residential and commercial property development markets
The government is rumoured to be announcing temporary changes to the Stamp Duty Land Tax (SDLT) regime for residential properties, to attempt to boost economic activity and revive house prices in the UK following the coronavirus.
The plans, if they are happening, will be revealed on Wednesday 8 July, with the main point thought to be an increase of the threshold at which taxpayers start to pay SDLT.
Currently, the standard SDLT charge on residential properties is charged on a tiered basis, with no SDLT payable on the first £125,000, then 2% up to £250,000, rising through 5% and 10% to a maximum of 12%.
Higher rates apply to second homes and other additional properties.
Indications are that the major change will be to increase the threshold at which buyers start to pay SDLT to £500,000, potentially saving £2,500 on properties costing £250,000, and £15,000 on properties costing £500,000 or more.
Legislation will apparently be introduced with the Autumn budget, but it seems likely that the new rates may apply with immediate effect, possibly from Wednesday.
It would therefore be prudent to delay residential completions due this week until more details are available
Other uncertainties are whether there will be additional benefits given to First Time Buyers, or how these changes will affect those subject to the additional 3% charge, if it applies to them at all.
For further information, please contact Robert Bailey or Scott Woolley.
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