UK Stamp Duty Holiday: What Does It Mean for Relocating Employees?
On 8 July 2020, the UK government announced a Stamp Duty Land Tax “holiday” affecting home purchases completing between 8 July 2020 and 31 March 2021. This welcomed announcement is in response to ongoing uncertainty within the UK housing market, following heavy disruption caused by the COVID-19 pandemic. Our recent white paper, UK Stamp Duty Holiday: What does it mean for relocating employees?, outlines the changes to Stamp Duty Land Tax (SDLT) and the potential impact it may have on clients and their relocating employees.
Good News for the UK Housing Market
Like all housing markets around the world, the COVID-19 pandemic has had a major impact on the UK property market. In fact, property portal Zoopla estimates around £82 billion property sales were stalled during this period. This SDLT holiday has been welcomed by many industry experts as a way to combat the current market uncertainty, not only around COVID-19, but also the unknown consequences of the end of the Brexit transition period (due to close at the end of the year).
Changes Outlined
- Zero SDLT rate is applied from 08/07/2020 until 31/03/2021
- Purchases must COMPLETE within this timeframe to be eligible
- Zero SDLT rate applies on purchases with a value of up to £500,000
- SDLT rates only impact the portion of the value that enters the next banding, rather than the full amount
The following outlines each SDLT banding:
|
Purchase Value |
SDLT Rate |
|
Up to £500,000 |
0% (No Fee) |
|
Any Value Between £500,001 and £925,000 |
5% |
|
Any Value Between £925,001 and £1.5 Million |
10% |
|
Any Further Value >£1.5 Million |
12% |
Impact on Relocation
For relocating employees either moving domestically in and around the UK or arriving internationally, the SDLT holiday may be a significantly motivating factor to complete on moves in the coming six months. This is particularly true for those looking to purchase a property within the higher cost brackets, as it will attract the greatest SDLT savings.
Organisations planning UK-bound moves in 2021, should consider scheduling them for the earlier part of the year to take advantage of this SDLT holiday. This is especially the case for group moves.
For more information, read our white paper, UK Stamp Duty Holiday: What does it mean for relocating employees? or contact your Cartus representative.
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