Reduced SDLT rates in 2020

The UK government has announced a 'stamp duty land tax (SDLT) holiday' until Mar 31, 2021 in attempt to revive the residential housing market in reaction to the Covid-19 pandemic. The phrase 'holiday' is slightly misleading because there will still be SDLT to pay for properties v...

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Bibliographic Details
Published in:Taxation 2020-07, Vol.186 (4753)
Main Author: O'Hara, Suzanne
Format: Article
Language:English
Subjects:
COVID-19
Housing
Pandemics
Property taxes
Property values
Stamp duties
Online Access:Get full text
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Summary:The UK government has announced a 'stamp duty land tax (SDLT) holiday' until Mar 31, 2021 in attempt to revive the residential housing market in reaction to the Covid-19 pandemic. The phrase 'holiday' is slightly misleading because there will still be SDLT to pay for properties valued at more than £500,000 or for properties below £500,000 on which the 3% surcharge applies. That said, the measures will provide significant savings (up to £15,000) and in many cases -- the government estimates "nearly nine out of ten" -- the buyer will pay no duty at all. Although the measures have been widely welcomed, they will not help those furloughed employees who are struggling to obtain a mortgage because of uncertainty around their future income. Moreover, many economists predict a significant decrease in property values by Mar 2021 as a result of uncertainties caused by the pandemic.
ISSN:0040-0149