Patrick Cannon: Why I started Cannon Chambers
2020 will be seen by historians as a year of disruption and seismic change but also a year of new beginnings. Nationally we were...
Read More >
On Wednesday 11 March 2020, Rishi Sunak delivered his first Budget.
Yes. The 3% rate for additional properties now applies up to £500,000.
No. But the devolved administrations usually make similar changes to LBTT and LTT.
First time buyer’s relief is abolished as any purchase up to £500,000 is exempt until 31/3/21, so no longer needed.
Sometimes a property counts as two or more dwellings and it is possible to reduce the SDLT by claiming multiple dwellings relief.
Care now needs to be taken because sometimes the effect of claiming multiple dwellings relief could be to increase the amount of SDLT! This is because of the 1% rule.
Take for example a property bought for £600,000 where there is an annexe which is sufficiently self-contained to count as a dwelling in its own right.
It can be a grey area whether properties which come with paddocks and fields counts as “residential property” or as “mixed use property“. Previously it was almost always the case that the SDLT would be less if the property counted as mixed use. That is now turned on its head for properties worth under £1,215,000.
Take for example a house with a field being sold for £900,000.
No, unfortunately, the change is not retrospective and you will have to pay the stamp duty of £15,000 (or £30,000 if it’s a second home).
From 8 July you pay £15,000 instead of £30,000.