Stamp Duty Land Tax holiday

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There is a temporary cut in Stamp Duty Land Tax (SDLT) from July 8 by raising the nil-rate band from £125,000 to £500,000 until March 31, 2021.

The Treasury estimates that, as a consequence, around nine in 10 people buying a main residence will pay no SDLT.

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000.

These rates apply whether you are buying your first home or have owned property before.

You can use the information below to work out the SDLT due:

Property or lease premium or transfer value - Up to £500,000 - SDLT rate Zero. 

Property or lease premium or transfer value - The next £425,000 (the portion from £500,001 to £925,000) - SDLT rate - 5%

Property or lease premium or transfer value - The next £575,000 (the portion from £925,001 to £1.5 million)  - SDLT rate - 10%

Property or lease premium or transfer value - The remaining amount (the portion above £1.5 million) - SDLT rate - 12%

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates for additional properties.

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

The following rates apply:

Property or lease premium or transfer value - Up to £500,000 - SDLT rate - 3%

Property or lease premium or transfer value - The next £425,000 (the portion from £500,001 to £925,000) - SDLT rate - 8%

Property or lease premium or transfer value - The next £575,000 (the portion from £925,001 to £1.5 million) - SDLT rate- 13 %

Property or lease premium or transfer value - The remaining amount (the portion above £1.5 million) - SDLT rate- 15%

New leasehold sales and transfers

The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021.

The following rates will apply:

Net Present Value of any Rent - Up to £500,000 - SDLT rate - Zero

Net Present Value of any Rent - Over £500,000 - 1%

Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

On the April 1, 2021, the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to July 8, 2020.