The government has temporarily increased the stamp duty threshold, under the changes, homebuyers will not pay any tax on main homes up to £500,000 until 31st March 2021.
The average stamp duty saving will be £4,500, with the majority of buyers now paying no stamp duty at all on purchases. Previously, only homes below £125,000 and first-time buyers of homes up to £300,000 escaped stamp duty.
The new Stamp Duty Land Tax ( SDLT ) rates to the 31st March 2021 are as follows;
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% |
More than one property?
The 3% surcharge for additional properties (second homes and investors) still applies on top of the revised rates, so purchases of homes valued up to £500,000 will attract a 3% stamp duty bill.
Though the announcement may disappoint buy-to-let landlords and anyone planning to buy a second home, when you buy any property in addition to your main residence, be it a second home, a holiday home or a buy-to-let, there is an additional stamp duty charge. This additional charge starts at 3% and then rises in bands, climbing to 15% for the most expensive properties.
The new stamp duty additional rates to the 31st March 2021 are as follows;
Additional 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% |