Stamp taxes and coronavirus (COVID-19)

Produced by Tolley
  • (Updated for Coronavirus (COVID-19))
Stamp taxes and coronavirus (COVID-19)

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Stamp taxes and coronavirus (COVID-19)
  • Land transactions
  • England and Northern Ireland
  • Scotland
  • Wales
  • Stamp duty and stamp duty reserve tax

Land transactions

England and Northern Ireland

For purchases of residential property between 8 July 2020 and 31 March 2021 inclusive there is a temporary cut in stamp duty land tax (SDLT). This is achieved by increasing the zero-rate band from £125,000 to £500,000.

For purchases (and lease premiums) during the period of the temporary cut, the rate of SDLT on each band of consideration is therefore as follows:

Main rateHigher rate (additional properties)
Up to £500,0000%3%
Remaining amount over £1,500,00012%15%

The nil rate band that applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021. The rate is 1% for the part of the net present value in excess of £500,000.

While the temporary cut in rates applies, the special rules for first-time buyers do not apply.

Companies buying residential property worth less than £500,000 will also benefit from the temporary cut in rates, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

The temporary cut in rates applies only where the property is in England or Northern Ireland. Transactions on or after 1 April 2

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