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STAMP DUTY LAND TAX TEMPORARY CHANGES
Added by Berlad Graham
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July 9, 2020
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From the 8th July 2020 the Stamp Duty Land Tax rates on RESIDENTIAL properties have now changed to the following rates;
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.
| 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% |
If you are purchasing additional property, i.e. you own a home property and are buying a second home or buy to let then the following rates apply. These rates also apply if you are purchasing through a Company.
| 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% |
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 | SDLT rate |
| Up to £500,000 | Zero |
| Over £500,000 | 1% |