Which statement is true regarding the SDLT exemption mentioned for properties under £500,000?

Which statement is true regarding the SDLT exemption mentioned for properties under £500,000?

• A. It may result in nil tax for properties under £500,000
• B. It always applies irrespective of price
• C. It increases SDLT for high-value properties
• D. It is only available to first-time buyers with properties above £500,000

Answer: (A)

During the SDLT holiday, no SDLT is due on the first £500,000 of a residential property price. So if the price is under £500,000, the amount of SDLT due can be zero. This makes the statement true. The relief isn’t universal for all prices—only up to the £500k threshold—with any amount above that still taxed at the normal rates. It doesn’t increase SDLT for higher-value properties, it simply offers a 0% rate on the portion up to £500k. And it isn’t restricted only to first-time buyers; the relief applied to many buyers, not just those purchasing above £500k.

During the SDLT holiday, no SDLT is due on the first £500,000 of a residential property price. So if the price is under £500,000, the amount of SDLT due can be zero. This makes the statement true. The relief isn’t universal for all prices—only up to the £500k threshold—with any amount above that still taxed at the normal rates. It doesn’t increase SDLT for higher-value properties, it simply offers a 0% rate on the portion up to £500k. And it isn’t restricted only to first-time buyers; the relief applied to many buyers, not just those purchasing above £500k.