Updates to Stamp Duty Land Tax

The end of June 2021 date has now passed for the initial relief of SDLT (Stamp Duty Land Tax) where the first £500,000 benefited from the 0% SDLT rate.  This was introduced in July 2020 where you bought your own home, so if you bought a property to live in for £500,000, there would be no SDLT to pay.

What is the new rate of Stamp Duty Land Tax?

For transactions made between now and 30 September 2021, the first £250,000 will benefit from the 0% SDLT rate:

  • Up to £250,000 – 0%
  • The next £675,000 – 5%
  • The next £575,000 – 10%
  • The remaining amount above £1,500,000 – 12%

What happens from 1 October?

For transactions made from 1 October 2021, the rates go back to how they were pre-covid where the first £125,000 will benefit from the 0% SDLT rate:

  • Up to £125,000 – 0%
  • The next £125,000 – 2%
  • The next £675,000 – 5%
  • The next £575,000 – 10%
  • The remaining amount above £1,500,000 – 12%

Note for any buyers purchasing second properties, such as buy-to-let property, there is an additional 3% surcharge to add to all of the band rates.

The rules around SDLT are complex, especially when you already have one or more properties and the number and nature of the properties you acquire can also affect the SDLT due, so we always recommend seeking tax advice before you enter into a transaction.

Next steps

If you have any questions about Stamp Duty Land Tax or would like further advice on tax planning, please do get in touch and our specialist tax team will be happy to help you.

 

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