What SDLT rates applied to residential property during the further temporary relief period from 1 July to 30 September 2021?

During the further temporary relief period, standard residential SDLT rates were 0% on the first £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1,500,000, and 12% above £1,500,000. The nil-rate threshold was double the usual £125,000 level, providing significant savings for residential buyers completing in this period.

How did the higher rates surcharge for additional dwellings apply during the section 1A relief period?

Purchasers buying additional residential properties such as second homes or buy-to-let properties paid a 3 percentage point surcharge on top of the standard temporary rates. This meant rates of 3% up to £250,000, 8% from £250,001 to £925,000, 13% from £925,001 to £1,500,000, and 15% above £1,500,000 during the relief period.

What happens if a transaction was substantially performed during the relief period but the conveyance completed after 30 September 2021?

Section 1A contains a protective rule ensuring that where a contract was substantially performed during the relief period, the later conveyance is not treated as a separate taxable transaction merely because temporary relief rates no longer apply. Buyers benefit from the relief rates based on the substantial performance date and are not penalised by timing differences.

How did the section 1A relief period relate to the original SDLT holiday under the Stamp Duty Land Tax (Temporary Relief) Act 2020?

The original SDLT holiday raised the nil-rate threshold to £500,000 from 8 July 2020 to 30 June 2021. Section 1A provided a transitional step-down period from 1 July to 30 September 2021, setting the nil-rate band at £250,000 before the return to the standard £125,000 threshold on 1 October 2021.

Stamp Duty Land Tax (Temporary Relief) Act 2020 section 1A

Further period for reduced rates of SDLT on residential property

Section 1A introduced a further period of temporary SDLT relief for residential property transactions completing between 1 July 2021 and 30 September 2021, with a nil-rate threshold of £250,000 instead of the usual £125,000.

The further temporary relief period ran from 1 July 2021 to 30 September 2021, during which the SDLT nil-rate band for residential property was raised to £250,000.
Standard residential rates during this period were: 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1,500,000, and 12% above £1,500,000.
For additional dwellings (the higher rates surcharge), the rates were 3% higher at each band: 3% up to £250,000, 8% from £250,001 to £925,000, 13% from £925,001 to £1,500,000, and 15% above £1,500,000.
Where a contract was substantially performed during the relief period but completed by conveyance afterwards, the completion was not treated as a separate transaction solely because the temporary relief rates no longer applied at the date of completion.

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