MegaBanner-Right

MegaBanner-Left

LeaderBoad-Right

LeaderBoard-Left

Home » Industry News » Property Development Sector News » Homebuyers latest: Tapering of stamp duty land tax begins

Homebuyers latest: Tapering of stamp duty land tax begins

What homebuyers need to know about Stamp Duty Land Tax which started in July 2020, and is now being tapered down.

The tapering down of the temporary Stamp Duty Land Tax (SDLT) that was introduced on 8 July 2020 in response to the pandemic and subsequently extended in the spring Budget has begun. The temporary extension of the nil rate band to £500,000 ended on 30 June 2021. This saw many homebuyers unable to complete their transactions on time with solicitors struggling to cope with the increased demand.

From 1 July 2021 until 30 September 2021, the nil rate band will be £250,000. The nil rate band will return to the standard amount of £125,000 from 1 October 2021. This applies to England and Northern Ireland only.

No SDLT is payable for first-time homebuyers making a purchase of up to £300,000. The first-time buyer’s rate was superseded by the temporary SDLT holiday until 30 June 2021.

SPECIAL RULES AND RATES FOR FIRST-TIME HOMEBUYERS

However, from 1 July 2021, the special rules and rates for first-time buyers apply. The first-time buyer’s relief also applies to the first £300,000 for purchases up to £500,000. This has the effect of increasing the nil-rate threshold to £300,000 for first-time buyers of properties costing up to £500,000. There is no relief available for first-time buyers spending more than £500,000 on a property. There are requirements that must be met to qualify for the relief.

To enquire about Cape Business News' digital marketing options please contact sales@cbn.co.za

Related articles

The hidden gold in your drawer: How eWaste is powering the circular economy

Africa is experiencing a digital revolution. But while more people gain access to devices that improve lives, there’s a growing downside: electronic waste. Over...

City partnership programmes put young Capetonians to work

The City’s work with industry growth organisations has yielded major investments and thousands of jobs for young Capetonians.   ‘By funding and working closely with our...

MUST READ

Strategic co-location of IFAT Africa and analytica Lab Africa to boost...

IFAT Africa and analytica Lab Africa will be co-located at the Gallagher Convention Centre this year to optimise the synergies across the laboratories, science...

RECOMMENDED

Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.