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Summer Statement 2020: Updates to the Stamp Duty Rates

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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 valueSDLT rate
Up to £500,000Zero
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 valueSDLT rate
Up to £500,0003%
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%

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