Stamp Duty Holiday
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 value | 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% |
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 value | SDLT rate |
Up to £500,000 | 3% |
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.