STAMP DUTY RELIEF : WHAT IT MEANS FOR HOMEBUYERS
In July 2020, UK Chancellor Rishi Sunak announced a temporary Stamp Duty Land Tax (SDLT) holiday for residential properties in England and Northern Ireland. Homebuyers would pay no stamp duty on properties up to £500,000, with the measure lasting until 31 March 2021
What Was the Previous Threshold?
Before the change:
- The 0% SDLT threshold was £125,000 for most buyers.
- First-time buyers paid no SDLT on homes up to £300,000, provided the property was under £500,000.
With the temporary holiday, all buyers paid no SDLT on purchases up to £500,000.
Stamp Duty Rates (8 July 2020 – 31 March 2021)
| Property Price Bracket | SDLT Rate |
|---|---|
| £0 – £125,000 | 0% |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Over £1.5 million | 12% |
Example:
For a property priced at £850,000, you would pay:
- 0% on the first £125,000
- 2% on the next £125,000 (£2,500)
- 5% on the remaining £600,000 (£30,000)
Total SDLT: £32,500
When Is Stamp Duty Paid?
Stamp duty must be paid to HMRC within 14 days of completion. Your solicitor typically handles this. Some buyers choose to add the SDLT amount to their mortgage—check with your lender.
Buy-to-Let & Second Homes
From April 2016, an additional 3% surcharge applied to each SDLT band for buy-to-let and second homes:
| Price Bracket | Standard Rate | Buy-to-Let/Second Home |
|---|---|---|
| Up to £125,000 | 0% | 3% |
| £125,001 – £250,000 | 2% | 5% |
| £250,001 – £925,000 | 5% | 8% |
| £925,001 – £1.5 million | 10% | 13% |
| Over £1.5 million | 12% | 15% |
Need Help Calculating Stamp Duty?
Use our Stamp Duty Calculator to estimate how much you’ll need to pay.
Disclaimer: This information is for general guidance only and may not reflect the most current legal or tax changes. Always consult a solicitor or financial adviser for personalised advice