9th Jul 2020 -

What is Stamp Duty?

Stamp Duty Land Tax (SDTL) is a compulsory tax you pay when you own a home or land above a certain price in England and Northern Ireland. Previously you would have paid STDL on residential properties sold for over £125,000 and non-residential land and properties sold for over £150,000.

What does Stamp Duty Holiday mean?

The government announced on the 8th July that any residential properties purchased between now and the 31st March 2021, will pay a reduced rate of Stamp Duty Land Tax. Meaning if you purchase a residential property between this period, you only start to pay SDLT on the amount you paid for the property above the new rate of £500,000.

These rates will apply to you whether you're a first time buyer or if you've owned a property before. First time buyers would have previously paid STDL on properties over £300,000 but these rules will now be replaced with the new rates stated below:

Property or lease premium or 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%

Higher Rates for Additional Properties

The increased rate of 3% for purchases of additional homes will applied on top of the revised standard rates, from the 8th July until the 31st March 2021. 

Property or lease premium or transfer valueSDLT rate
Up to £500,0003%
The next £425,000 (the portion from £500,001 to £925,000)8%
The next £575,000 (the portion from £925,001 to £1.5 million)13%
The remaining amount (the portion above £1.5 million)15%

If you would like to find out more head to the Government website or read how Rightmove are noticing more people looking for properties since the Chancellor's announcement.