Good news for clients looking to take the next step in expanding their property portfolio as UK chancellor, Rishi Sunak, yesterday announced a stamp duty holiday, effective 8 July 2020 until 31 March 2021, as part of the ongoing package of stimulus measures introduced in the wake of the coronavirus pandemic.
The measure applies to buyers of property in England and Northern Ireland.
Until the announcement, Stamp Duty Land Tax (SDLT) was payable on properties over £125,000, although for first-time buyers the threshold was £300,000. From 8 July 2020, SDLT will not be chargeable on purchases under £500,000. For purchases over £500,000, the existing SDLT bands apply, with the proviso that the first £500,000 will be ‘free’.
Whilst purchasers of second homes of buy-to-let properties will benefit from the measure, the 3% extra duty on the whole purchase price will still be payable.
For those looking to expand their portfolios, it seems as though now is as good a time as any. If you’d like to discuss how we can get help with the structuring of your property portfolio, get in touch.