Stamp Duty Land Tax 'Holiday'

Temporary changes to Stamp Duty Land Tax

With effect from July 2020, the new Stamp Duty Land Tax (SDLT) threshold of £500,000 will apply and will run until 31 March 2021. This means any buyer purchasing a primary residential property between 8 July 2020 and 31 March 2021, up to the value of £500,000, will be exempt of paying Stamp Duty. 

The Government exemption will apply to all primary residential property purchases whether the purchaser is a first-time buyer or someone who has owned a property before. 

On purchases over the £500,000 threshold, buyers will pay a 5% SDLT on the portion from £500,001 to £925,000, thereafter 10% on the portion from £925,001 to £1.5 million and 12% on any portion over £1.5 million. 

At this stage, it is anticipated that from 1 April 2021, the SDLT ‘holiday’ will come to an end and the SDLT regulations will revert to what they were before the temporary changes were announced.

Property transfer value (8th July 2020 to 1st April 2021)SDLT rate
Up to £500,000Zero
The next £425,000 (the portion from £500,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%