Important interim changes to stamp duty land tax (“SDLT”)
Stamp duty (SDLT), the tax on buying land or properties, is being temporarily cut in England and Northern Ireland.
From now until 31 March it will only be charged on properties costing £500,000 or more.
Previously it was charged on properties costing £125,000 or more, except for first-time buyers, who paid nothing up to £300,000 and then a reduced rate up to £500,000.
So this will be a tax cut for first-time buyers looking for property over £300,000 as well as other buyers going for anything over £125,000.
Furthermore ‘buy-to-let’ investors are also set to benefit from the SDLT holiday. Although investors and second homeowners will continue to pay the additional 3% surcharge – they will pay no further SDLT on the first £500,000 of the property’s value/price.