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SDLT Update – Chancellor’s Summer Statement

08/07/2020

At a glance

The Chancellor has today announced a temporary lifting of stamp duty land tax (SDLT) nil rate band to £500,000 for those acquiring residential property in England and Wales (who are not caught by the additional 3% SDLT charge). This change represents a saving of £15,000 for those acquiring a new main residence for £500,000 or more.

For those not replacing their main residence and buying additional homes, the additional 3% SDLT rates applicable to them will temporarily change so that the first £500,000 will now be subject to SDLT at only 3%. This represents a saving of £15,000 on what would be payable by such purchasers absent the temporary changes on residential purchases for £500,000 or more.

It is hoped that these changes will stimulate economic activity in the short term but, whether they will stimulate long term economic growth remains to be seen. Also, whether the SDLT savings are real will depend on whether savvy vendors now decide to increase the asking price for their properties to take account of this change.

The change is effective for purchases between 8 July 2020 and 31 March 2021.

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