Changes to SDLT announced in Budget 2010
The two changes to stamp duty land tax (SDLT) announced today in the 2010 Budget are:
- A two year holiday period from SDLT for first time property buyers; and
- A new rate of SDLT for expensive properties
- an individual or individuals jointly purchase a major interest in land which is wholly residential, and
- the consideration is more than £125,000 but not more than £250,000, and
- that individual (or all of them) intends to occupy the property as his/her or their only or main residence and
- has or have not previously purchased such an interest or its equivalent anywhere in the world and
- the effective date of the transaction is on or after 25 March 2010 and before 25 March 2012.
Budget Note: Stamp Duty Land Tax – First Time Buyers
SDLT: Questions and Answers and Technical Notes
At present the highest SDLT rate of 4% applies to purchases where the consideration exceeds £500,000. Legislation in Finance Bill 2010 will add a new rate of 5% for transactions in residential property where the consideration for the transaction exceeds £1 million.
The new higher rate will apply to residential purchases where the effective date (normally the date of completion) is on or after 6 April 2011.
More information is available in the following documents:
Budget Note: Stamp Duty Land Tax Rates and Thresholds
All other SDLT rates and thresholds remain unchanged and full details can be found in Press Notice 02