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 £500,000||Zero|
|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%|