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Stamp Duty Land Tax: temporarily reduced rates until 31 March 2021

by | Jul 29, 2020 | Client Lenders, Clients

Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased between 8 July 2020 until 31 March 2021 inclusive. Although these changes were not specifically intended for investors, they will benefit.

If you buy a residential property between 8 July 2020 and 31 March 2021, you only start to pay stamp duty on the amount that you pay for the property above £500,000. During this period the special rules for first-time buyers are replaced by the reduced rates set out 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%

 

Use the official gov.uk SDLT calculator to work out how much tax you’ll pay.

Higher rates for additional properties/buy-to-let properties

The 3% higher rate for purchases of additional dwellings applies on top of the 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%

 

Visit the gov.uk website for additional details.

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