In an economic statement made today, the Chancellor, Rishi Sunak, announced an increase to the threshold at which Stamp Duty Land Tax (SDLT) becomes payable. SDLT is a tax paid by buyers on the purchase of a property with varying rates depending on the purchase price and the individual circumstances of the buyer.
Previously, a residential property had to be worth at least £125,000 before SDLT would become payable. That value has now been temporarily raised to £500,000. This change takes effect immediately and is to be in place until 31 March 2021.
Before this change was announced, an individual buying a residential property to be their main residence worth £500,000 would have been facing an Stamp Duty Land Tax bill of £15,000. The change therefore presents a large potential saving for buyers, with the Chancellor noting that the average stamp duty bill will fall by £4,500.
This change will be very encouraging to potential buyers and is intended to revive the property market following the coronavirus crisis.
There will be further detail to follow as we have questions and we are sure many of our clients will also have questions. When we get more information on this we will share it.
At rhw Solicitors, Guildford, we know that a property purchase is a large lifetime investment and it is therefore vital that you receive detailed and thorough advice.