HMRC has published the latest issue of the 'Stamp Taxes Newsletter’.

The bulletin includes details of the temporary increase in the Stamp Duty Land Tax (SDLT) nil-rate band announced as part of the Summer Economic update. In England and Northern Ireland, the amount on which no SDLT is payable on residential property purchases has been increased to £500,000 (from £125,000) from 8 July 2020 until 31 March 2021.

Also covered in the bulletin are details about the 3% higher rate of SDLT that applies to purchases of additional residential property such as buy to let and second homes. If an individual buys a new main residence but there is a delay in selling their previous main residence, they will have to pay the higher Stamp Duty rates as they own two properties. However, once they sell their previous main home within 3 years of buying a new home, they can apply for a refund of the higher rate of SDLT. Under certain exceptional circumstances, the 3-year cap can be extended where the delay in selling was beyond the control of the vendor. HMRC has confirmed that the impact of the Coronavirus (COVID-19) pandemic could meet the definition of an exceptional circumstance.

The remaining contents of the newsletter relate to the following:

• Multiple Dwellings Relief (MDR) – tribunal decision
• Recent changes to guidance
• SDLT – letters of authority
• Stamp Duty changes due to Coronavirus measures
• Stamp duty – block transfers
• Stamp Duty Reserve Tax – Exempt ‘Z’ Accounts in CREST.

Source: New feed