Summer Economic Update – Landlords ReactionMake Text Bigger
The Chancellor, Rishi Sunak, has just given a Summer Economic Update to the house of commons as the second of three phases to guide the UK through the Covid-19 National Emergency.
The much anticipated, hyped and discussed Stamp Duty reductions increasing the threshold where no SDLT is paid to £500,000 will be introduced with immediate effect until the 31st March 2021. However, the Chancellor confirmed this will be available for ‘buying a main home’ and no such mention was made for second or investment properties leaving landlords and BTL out in the cold.
A £2 billion green homes grant scheme will be accessible for Landlords though and will contribute two thirds of the cost to energy efficiency improvements to all residential homes up to a maximum of £5,000.
The Chancellor said: ” As part of this package homeowners and landlords in England will be able to apply for vouchers from a £2 billion Green Homes Grant scheme this year to pay for green improvements such as loft, wall and floor insulation that could save some households hundreds of pounds a year on their energy bills while creating thousands of jobs for tradespeople.”
The rate of VAT applied on most tourism, accommodation, attractions and hospitality-related activities will also be cut from 20% to 5% until the 12th January. The detail on whether this will include Holiday Homes is not yet clear and further guidance on the scope of this relief will be published by HMRC in the coming days.
New .Gov update on Stamp duty click here:
Higher rates for additional properties
The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.
The following rates apply:
|Property or lease premium or transfer value||SDLT rate|
|Up to £500,000||3%|
|The next £425,000 (the portion from £500,001 to £925,000)||8%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||13%|
|The remaining amount (the portion above £1.5 million)||15%|
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