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.