Hi, How Can We Help You?

Stamp Duty Land Tax Update

Stamp Duty Land Tax Update

Yesterday, the Government announced a temporary Stamp Duty Land tax ‘holiday’ for residential buyers.

This change increases the band for which Stamp Duty is payable to take effect immediately and up until 31 March 2021.

This means that where Stamp Duty would usually be payable on purchases over £125,000 as follows:

Property or lease premium or transfer value SDLT rate 
Up to £125,000Zero
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £625,000 (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%

This will now be reduced to nil for the first £500,000 and above this level, the following rates will apply: 

Property or lease premium or transfer value SDLT rate 
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 to £925,0005%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

These rates are temporary and will apply if you purchase a residential main home between 8th July 2020 and 31st March 2021. 

The additional rate of 3% Stamp Duty for purchases of additional dwellings still apply but the 3% band has now been increased for purchases up to £500,000.

The revised SDLT rates for purchases of additional dwellings are shown below: 

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%

Unfortunately, the new temporary rates do not apply to those purchases that have completed before 8 July 2020.

If you are an existing client and the changes affect your current purchase your file will be automatically updated and the change will be reflected in your completion statement.

Share Post
Levins Solicitors