In his Summer Economic Update last week, Chancellor Rishi Sunak announced some quite generous changes to Stamp Duty Land Tax (SDLT) in relation to residential property purchases. By increasing the nil rate band on residential property from £125,000 to £500,000, the Chancellor has also reduced the SDLT payable when the property is worth over £500,000.
The changes will last until 31 March 2021 and the intention is to boost the housing market, not to mention the knock-on impact in other areas. Think about it; house movers often use local agents and removal firms, they buy new furniture, fixtures, fittings and homewares, they employ tradespeople to carry out renovations and, if their house moves are anything like mine, they probably need to book holidays to recover from it all – creating much needed economic activity.
If you’re purchasing a house, it’s likely that you are selling one too and with the rule changes on 6 April 2020, it might be the case that you need to file a return with HMRC within 30 days of the sale. If the property is your “principal private residence” – your only or main home that you have always lived in, then a return won’t be necessary. However, if it was a second home or a rental property then you may need to complete and submit a return. Furthermore, if you have Capital Gains Tax (CGT) to pay, this has to be calculated on this return and paid within 30 days of the house sale.
If you are thinking of buying or selling a property, get in touch with partner Kate Naylor by calling 0113 297 6825 or email firstname.lastname@example.org