Extension of the SDLT Holiday
As many suspected would happen, the Chancellor announced in the 2021 budget that the Stamp Duty Land Tax (SDLT) holiday would be extended to 30 June. It had been due to expire on 31 March.
The SDLT holiday applied from 8 July 2020 and was a temporary increase to the amount a purchaser could pay for residential property on a “main home” before SDLT was due, from £125,000 to £500,000. Reduced rates also applied for people buying second homes or buy to let properties, and for companies buying residential property.
The extension introduces a staged withdrawal of the reduced SDLT rates, by:
- extending to 30 June 2021 the nil rate band of £500,000, which was due to end on 31 March 2021
- introducing a nil rate band of £250,000 for the period 1 July 2021 to 30 September 2021
The reduced SDLT rates are set out below:
Up to 30 June 2021
Purchases other than higher rates purchases:
| Relevant consideration | Percentage |
| So much as does not exceed £500,000 | 0% |
| So much as exceeds £500,000 but does not exceed £925,000 | 5% |
| So much as exceeds £925,000 but does not exceed £1,500,000 | 10% |
| The remainder (if any) | 12% |
Table A at paragraph 1 of Schedule 4ZA (for higher rates purchases):
| Relevant consideration | Percentage |
| So much as does not exceed £500,000 | 3% |
| So much as exceeds £500,000 but does not exceed £925,000 | 8% |
| So much as exceeds £925,000 but does not exceed £1,500,000 | 13% |
| The remainder (if any) | 15% |
From 1 July 2021 to 30 September 2021
Purchases other than higher rates purchases:
| Relevant consideration | Percentage |
| So much as does not exceed £250,000 | 0% |
| So much as exceeds £250,000 but does not exceed £925,000 | 5% |
| So much as exceeds £925,000 but does not exceed £1,500,000 | 10% |
| The remainder (if any) | 12% |
Higher rates purchases:
| Relevant consideration | Percentage |
| So much as does not exceed £250,000 | 3% |
| So much as exceeds £250,000 but does not exceed £925,000 | 8% |
| So much as exceeds £925,000 but does not exceed £1,500,000 | 13% |
| The remainder (if any) | 15% |
