On the 8th July 2020, it was announced by the U.K government that the purchase of a residential property between the following dates: 8th July 2020 to 31st March 2021, was subjective to pay a reduced rate of stamp duty if the property was above £500,000. These rates apply to both buying your first home or if you have previously owned a property.
The U.K government have put together a handy table to help you work out the stamp duty land tax due:
| 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 £925,000) | 10% |
| The remaining amount (the portion above £1.5 million_ |
There are higher rates than stated above for those who own multiple properties, but again this rate is for the period between 8th July 2020 to 31st March 2021.
| 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 £925,000) | 13% |
| The remaining amount (the portion above £1.5 million_ |
The government have provided these tables to help you calculate the amount of stamp duty you may need to pay when purchasing a property over the next few months.
If you want to know more you can visit Gov.UK or contact us.
*source gov.uk
