Stamp Duty Land Tax 'Holiday'

Temporary changes to Stamp Duty Land Tax

In July 2020, the Government announced a new Stamp Duty Land Tax (SDLT) ‘holiday’ for single residential property purchases. Originally due to end in September 2020, this has since been extended twice and will now end on 30 June 2021. From 1st July 2021 a reduced SDLT concession will apply which will end on 30 September 2021. At this stage, it is anticipated that from 1 October 2021, the SDLT ‘holiday’ will come to an end and the SDLT regulations and rates will revert to what they were before the temporary changes were announced.

The SDLT rates applying up to 30 June 2021 are as follows:

Property transfer valueSDLT 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%

The SDLT rates applying from 1 July to 30 September 2021 are as follows:

Property transfer valueSDLT rate
Up to £250,000Zero
The next £675,000 (the portion from £250,001 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%