Buyers in the UK are temporarily exempt from paying stamp duty on properties worth £500,000 or less. The new rates will remain in place for property completions until 31 March 2021. It’s imperative to ensure that you allow enough time for your purchase to be completed before the deadline if it impacts on your plans.
What does this mean in real terms? Well, buyers in the bracket of £400,000 to £500,000 will now gain an average saving of £15,000 on their purchase.
Property 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%
What about second properties?
Those purchasing second homes or buy-to-let properties also benefit from the stamp duty holiday, although they will still have SDLT to pay. Investors will already be aware of the 3% SDLT surcharge on second properties, and this 3% will still apply to the rates as reduced above.
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%
The HMRC Calculator has been updated for the current changes to see how this impacts on your own budgets. If you are in the process of buying a home or are thinking about it, click here for an FREE instant conveyancing quote.
The materials on this website do not constitute legal advice and are provided for general information only. Whether express or implied, no warranty is given concerning such materials. We shall not be liable for any technical, editorial, typographical, or other errors or omissions within the information provided on this website, nor shall we be responsible for the content of any web images or information linked to this website.
The information contained in this article does not constitute financial advice or recommendation and should not be considered as such. Arrow conveyancing does not offer financial advice and is not regulated by the Financial Conduct Authority (FCA), the authors of this article are not financial advisors and are therefore not authorised to offer financial advice.