Web Building imageThe temporary cut to Land and Building Transaction Tax (LBTT) nil-rate band introduced in July 2020 saw the starting point for LBTT rise from £145,000 to £250,000.

However, this was a temporary measure and as intended, for transactions with an effective date from 1 April 2021 onwards, the ceiling of the nil-rate band for residential LBTT will return to £145,000.

First-time buyers will continue to be able to claim the first-time buyer relief, which has the effect of raising the nil rate band to £175,000 and results in a reduction of tax of up to £600.

Proposed LBTT Rates and Bands for Residential Conveyances 2021-22


Relevant Consideration


Nil rate band

Not more than £145,000


First tax band

More than £145,000 but not more than £250,000


Second tax band

More than £250,000 but not more than £325,000


Third tax band

More than £325,000 but not more than £750,000


Fourth tax band

More than £750,000


UK Budget

The UK Budget is scheduled for Wednesday 3 March 2021.

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