The Chancellor has delivered a summer statement setting out his plans to help the economy recover from the devastating effecting of Coronavirus.
As has become the way of Rishi Sunak during this period, he managed to surprise most commentators with an extensive and creative package of measures designed to target support at the most affected and vulnerable parts of the economy.
After years of targeting the property sector with tax increases, he did offer some help on stamp duty land tax (SDLT). With immediate effect and until 31 March 2021, the threshold from which SDLT is charged has been raised from £125,000 to £500,000 in England and Northern Ireland. This will save anyone paying £500,000 or more for a residential property £15,000.
The 3% surcharge will still apply to additional properties (the 0% rate will become 3%).
Companies buying residential property will also benefit from the changes provided they meet the conditions for relief from the corporate 15% charge. Generally speaking, companies purchasing investment property, property to develop or property to trade are exempt from the 15% charge.
Written by Barry Soraff – Partner
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