Reduced SDLT rates in 2020

The government has announced a ‘stamp duty land tax holiday’ until 31 March 2021 in attempt to revive the residential housing market in reaction to the Covid-19 pandemic. The phrase ‘holiday’ is slightly misleading because there will still be SDLT to pay for properties valued at more than £500 000 or for properties below £500 000 on which the 3% surcharge applies – for example if a second or additional residential property is purchased. That said the measures will provide significant savings (up to £15 000) and in many cases – the government estimates ‘nearly nine out of ten’ – the buyer will pay no duty at all.

Although the measures have been widely welcomed they will not help those furloughed employees who are struggling to obtain a mortgage because of uncertainty around their future income. Moreover many...