Commentary on provisions of Act Section 1: Reduced rates of SDLT on residential property for a temporary period
Section 1(1) provides for modification as follows of Part 4 of the Finance Act 2003 as it applies to residential land transactions with effective dates between 8 July 2020 and 31 March 2021.
	Section 1(2) substitutes the table below for the existing "Table A: Residential" mentioned in section 55(1B) of Part 4 where the purchase is not liable to the `higher rates` –
Relevant consideration
Percentage
So much as does not exceed £500,000
0%
So much as exceeds £500,000 but does not exceed £925,000
5%
So much as exceeds £925,000 but does not exceed £1,500,000
10%
The remainder (if any)
12%
	Section 1(3) substitutes the table below for the existing "Table A: Residential" mentioned in paragraph 1(2) of Schedule 4ZA in Part 4 whereby a purchase is liable to the `higher rates` –
Relevant consideration
Percentage
So much as does not exceed £500,000
3%
So much as exceeds £500,000 but does not exceed £925,000
8%
So much as exceeds £925,000 but does not exceed £1,500,000
13%
The remainder (if any)
15%
	Section 1(4) substitutes the table below for the existing "Table A: Residential" mentioned in paragraph 2(3) of Schedule 5 in Part 4 where taxable rent is given for the purchase –
Rate bands
Percentage
£0 to £500,000
0%
Over £500,000
1%
	Section 1(5) makes provision to disregard section 57B and Schedule 6ZA of the Finance Act 2003 (affecting First Time Buyers) in the temporary relief period.
	Section 1(6) amends the effect of section 44 of the Finance Act 2003 so that no additional tax will be due by virtue of section 44 when a contract is completed after the temporary relief period has ended following substantial performance within the temporary relief period provided that the only reason for additional tax becoming due is that completion has occurred after the end of the temporary relief period.
	Section 1(7) makes provision to ensure that the terms ‘completion’, ‘contract’ and ‘conveyance’ as used in subsection (6) have the meanings given to them by section 44(10) of the Finance Act 2003.