In 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 £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) |
(Source Gov.UK)
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 £1.5 million) | 13% |
| The remaining amount (the portion above £1.5 million) |
(Source Gov.UK)
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.