A potential SDLT reduction?
Whilst we may not yet have a cure or vaccination for Covid-19, Rishi Sunak and his team (let's be honest here, it's not just him coming up with these ideas) have made proposals to give the housing market a shot in the arm.
These proposals will reduce the SDLT payable on properties by raising the ceiling for the 0% tax band from £125k to £500k, if reports are to be believed.
If given the green light, this could save purchasers £15k in SDLT.
The proposal is expected to be announced on Wednesday 8th July and to become part of the Autumn Budget in October. If there is a 3 month gap between announcing and bringing it in, this will have a massive impact on the housing market in the short term. Why complete on a house purchase now when you can wait three months and save £15K? There must be some transitional rules until October and we will wait to see what will happen.
Still, let's hope this is true as the economy is going to need a boost if the country is to minimise the impact of the pandemic. There is also, apparently, discussion about reducing VAT for pubs and restaurants to help the hospitality sector.
If you would like to know more about your SDLT position on a purchase or wish to discuss how you may be able to reduce your SDLT bill please contact the Private Client Team on PrivateClientEnq@gepp.co.uk or call us on 01245 228125.