Owner-Managed Businesses

Stamp taxes and coronavirus (COVID-19)

Produced by Tolley
  • 19 Oct 2021 22:32

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

Stamp taxes and coronavirus (COVID-19)

Land transactions

England and Northern Ireland

For purchases of residential property between 8 July 2020 and 30 June 2021 (extended from the previous end date of 31 March 2021 in Budget 2021), there is a temporary cut in stamp duty land tax (SDLT), achieved by increasing the zero-rate band from £125,000 to £500,000. This is followed by a nil rate band on residential property purchases of £250,000 where the acquisition of a chargeable interest takes place between 1 July 2021 and 30 September 2021. Where the acquisition takes place on or after 1 October 2021, the nil rate band on residential property reverts back to £125,000. See TIIN: Extension of the temporary increase to the Stamp Duty Land Tax nil rate band for residential properties.

For purchases (and lease premiums) during the period between 8 July 2020 and 30 June 2021, the rate of SDLT on each band of consideration is therefore as follows:

Main rateHigher rate (additional properties)
Up to £500,0000%3%
£500,001–£925,0005%8%
£925,001–£1,500,00010%13%
Remaining amount over £1,500,00012%15%

For purchases (and lease premiums) during the period between 1 July 2021 and 30 September 2021, the rate of SDLT on each band of consideration is therefore as follows:

Main rateHigher rate (additional properties)
Up to £250,0000%3%
£250,001–£925,0005%8%
£925,001–£1,500,00010%13%
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 30 June 2021. The rate is 1% for the part of the net present value in excess of £500,000. The nil rate band is £250,000 for transactions from 1 July 2021 to 30 September 2021, after which it revers to £124,000.

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