Stamp Duty Land Tax temporary reduced rates
Matthew Power • July 12, 2020
This weeks announcement that stamp duty is being temporarily reduced with immediate effect is most certainly the best news buyers, sellers and property professionals have had in a long while and represents huge savings especially for transactions below £500,000 where a zero rate applies for first time buyers.
Surrey property development company, Spring Developments acquire land and property for new housing projects across the South East. Our developments aimed mostly at first time buyers and home movers and the immediate reductions in stamp duty have been welcomed by our buyers with many saving as much as £15,000 on the purchase of their Spring Developments new homes.
Since stamp duty increase in 2016, property professional have been campaigning for SDLT to be reduced. Property professionals and second home owners being hit the hardest with higher rates, so like us I am sure many will be taking advantage of the temporary reduced rates on new acquisitions up until the 31st March 2020.
www.gov.uk provides the following information regarding Stamp Duty Land Tax and the temporary reduced rates and can be viewed by flowing this link
Residential Rates on purchases from 8 July 2020 to 31 March 2021
If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply
whether you are buying your first home or have owned property before.
You can use the table to work out the SDLT due:
Property or lease premium or transfer value SDLT rate
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates set out above.
Use the SDLT calculator
to work out how much tax you’ll pay.
Higher rates for additional properties
The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.
The following rates apply:
Property or lease premium or transfer value SDLT rate
Up to £500,000 3%
The next £425,000 (the portion from £500,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million)
We are pleased with progress at our site in the London Borough of Sutton where the substructure has now been completed and the detached bungalow is starting to take shape. This project has been constructed using SIPs, fabricated off site and assembled onsite over the past 4 weeks. This method of construction provides excellent over all thermal performance with low U values, reduced thermal bridging and excellent air tightness. In addition the property will have air source heat pumps, PV and a Bauder green roof all designed to make the property ultra energy efficient. We are currently working with our Kitchen and bathroom designers and have been working with our architects to improve some of the landscaping design. This detached 2 bedroom bungalow is expected to be completed in December 2024. If you are interested in purchasing this property and would like to find out more please do not hesitate to get in touch. info@spring-developments.com
Spring Developments are pleased to announce that our latest project started this week in the London Borough of Sutton. This development comprises a detached two bedroom bungalow with wrap around gardens and off street parking. The property is conveniently situated within walking distance of Sutton High Street and mainline station and we anticipate the property to be completed by the end of the year. For further information please do not hesitate to get in contact.
Spring Developments are pleased to announce the completion of another luxury conversion project in Twickenham. We have three apartments available with prices starting from £425,000. If you are interested in further information or to arrange a viewing please do not hesitate to get in touch.
