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, impacting the tax rates applied to different price bands of properties.

Description

The Stamp Duty Land Tax (Temporary Relief) Bill modifies the existing SDLT rates for residential properties for a specific period. The temporary relief period is from July 8th, 2020, to March 31st, 2021. The bill introduces new, reduced SDLT rates for residential properties during this timeframe. The changes affect how SDLT is calculated across different price brackets.

Key Changes to SDLT Rates (July 8th, 2020 - March 31st, 2021):

• 0% on the first £500,000
• 5% on the portion between £500,000 and £925,000
• 10% on the portion between £925,000 and £1,500,000
• 12% on any amount above £1,500,000

The bill also temporarily removes the higher rates of stamp duty for additional dwellings and alters the rates applicable to rented properties. The first-time buyer relief is also temporarily suspended during the relief period. The bill contains a clause to prevent SDLT being charged twice if contracts are agreed before the relief period but completed after it ends.

Government Spending

The bill is expected to reduce government revenue from SDLT. Precise figures on the expected reduction in government revenue are not included in the provided text. The temporary nature of the relief means the long-term impact on government spending is minimal.

Groups Affected

• Residential property buyers: Will benefit from lower SDLT payments during the temporary relief period.
• HMRC (Her Majesty's Revenue and Customs): Will see a temporary decrease in SDLT revenue collection.
• First-time buyers: Will not be eligible for the first-time buyer relief during this period, although they will still receive a benefit from the reduced overall SDLT.
• Landlords: Will see altered SDLT rates on any purchases or additional properties made during the temporary relief period.

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