Overview

This bill temporarily reduces the amount of Stamp Duty Land Tax (SDLT) payable on residential property purchases in the UK. The reduction applies for a limited time and aims to stimulate the housing market.

Description

The Stamp Duty Land Tax (Temporary Relief) Bill amends the Finance Act 2003. It introduces lower SDLT rates for residential properties purchased between July 8, 2020, and March 31, 2021 (the "temporary relief period").

The bill modifies the existing SDLT rate bands. For example, purchases up to £500,000 would be subject to 0% SDLT (instead of the usual rate), with higher rates applying to properties exceeding this threshold. Specific percentage changes are detailed in the bill’s text. Importantly, the relief for first-time buyers is temporarily removed during this period. The bill also includes provisions to ensure that transactions begun before the end of the relief period but completed after it continue to receive the benefit of the lower rates.

Government Spending

The bill will reduce government revenue from SDLT. The exact amount is not specified in the bill itself, but it's expected to be substantial given the temporary nature of the reduced tax rates and the potential boost in property transactions it is designed to generate.

Groups Affected

• Homebuyers: Those purchasing residential properties during the temporary relief period will benefit from lower SDLT payments, potentially saving significant sums of money.
• Property developers and sellers: A reduction in SDLT could increase demand and transactions in the housing market, positively impacting this group.
• HM Treasury: Will experience a reduction in tax revenue during the relief period.
• First-time buyers: This group will temporarily lose out on the existing first-time buyer relief during the specified period

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