Stamp Duty Land Tax: temporary reduced rates
Rishi Sunak has announced stamp duty has been scrapped for all homes under £500,000 to help kickstart the housing market.
The move was announced as part of the chancellor’s emergency mini-budget to head off a feared rise in unemployment caused by the coronavirus.
If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay stamp duty 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.
Use this table to work out what your payment:
|
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 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 |
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% |
This is a link to the stamp duty calculator on the governments website.
Source: HMRC website
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