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Stamp Duty Land Tax temporary reduced rates
Matthew Power • Jul 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)
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.
Our 6 flats in Sutton are now complete and all let. On this and every project we develop we invest a huge portion of our time researching the best products so that we can provide a bespoke development with a finish that is of an outstanding quality and built to last. Going back to brick and starting again is the norm for us so with exception for the buildings shell everything is brand new from the ground up. Our search for new projects is ongoing and we have funds available for multiple projects. If you are thinking of selling please do not hesitate to get in touch.
Our latest project in Twickenham is now officially under construction! Over the next 6 months we will be restoring this beautiful period building which dates back to 1905 to its former glory whilst converting it to 3 spacious luxury apartments. Having already restored and converted the building next door we are excited to be working on this project with the same contractors KWP Build By Design. The property is situated within a few hundred yards of Twickenham Station and early interest is anticipated so if this is an area you are considering purchasing in then please do not hesitate to get in touch to receive additional information about this property. Our approach to property acquisition is to seek out properties and buildings that have reach a point where they are no longer habitable and are in a derelict or totally unmodernised condition. We are cash buyers so in most cases can proceed with the purchase in a matter of only a few days. Following acquisition we will often seek some form of planning gain to enable us to repurpose the property to suit a wider range of occupiers but in all cases we approach the refurbishment with a view that we are looking to increase the life span of the building for many generations to come. Often this involves stripping the building back to the original brick work and starting from scratch introducing new floors, internal walls and modern fittings, renewing all timbers windows and drainage, whilst rectifying any structural issues along the way. This property was in a terrible condition and restoration will be a long process but buyers can be assured that apart from the brick shell and the beautiful stair case everything will be brand new and finished to our usual exceptionally high standard!
