Buyers in the UK are temporarily exempt from paying stamp duty on properties worth £500,000 or less. The new rates will remain in place for property completions until 31 March 2021. It’s imperative to ensure that you allow enough time for your purchase to be completed before the deadline if it impacts on your plans.
What does this mean in real terms? Well, buyers in the bracket of £400,000 to £500,000 will now gain an average saving of £15,000 on their purchase.
Property 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%
What about second properties?
Those purchasing second homes or buy-to-let properties also benefit from the stamp duty holiday, although they will still have SDLT to pay. Investors will already be aware of the 3% SDLT surcharge on second properties, and this 3% will still apply to the rates as reduced above.
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%
The HMRC Calculator has been updated for the current changes to see how this impacts on your own budgets. If you are in the process of buying a home or are thinking about it, click here for an FREE instant conveyancing quote.
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