Stamp Duty Land Tax Update July 2020

By July 15, 2020Property

On 8 June 2020, the Chancellor, Rishi Sunak, announced his mini budget that included a temporary raise in the Stamp Duty Land Tax (SDLT) threshold.

Previously, the threshold for paying SDLT was £125,000, although first time buyers benefited from a higher threshold of £300,000.

Under the new measures, the threshold is raised to £500,000. This means that anyone buying a property will not pay any SDLT on the first £500,000 of the purchase price/transfer value. 

This temporary change came into effect immediately and will remain in effect until 31 March 2021.

During this period, SDLT liability will be calculated as follows:

Property price/transfer value SDLT rate
Up to £500,000 Zero
£500,0001 to £925,000 5%
£925,001 to £1,500,000 10%
Above £1,500,00 12%

 

The above rates apply to first time buyers and those replacing their main residence.

Whilst anyone purchasing an additional property will still benefit from the increased SDLT threshold, the 3% high rate will still apply on the revised standard rates.

This means the rates for anyone purchasing additional properties are:

Property price/transfer value SDLT rate
Up to £500,000 3%
£500,0001 to £925,000 8%
£925,001 to £1,500,000 13%
Above £1,500,00 15%