15th July 2020
In an attempt to stimulate the housing market post COVID-19 lockdown, the government has temporarily reduced the rate of Stamp Duty Land Tax (SDLT) for home buyers in England and Northern Ireland. This means that until 31 March 2021, buyers will pay no Stamp Duty on the value of the property up to £500,000.
The new rules mean that a property for £900,000 for example would pay no tax on the value of the property up to £500,000, and 5% tax on the property value between £500,001 and £925,000. In this case, total liability for Stamp Duty would be £20,000 giving an effective tax rate of 2.22%. This is a saving of £15,000 based on the Stamp Duty rates that were in place prior to the 8th July 2020. Property purchases must be completed by 31 March 2021 to qualify for the new revised rates on Stamp Duty.
If you’re purchasing additional properties you will still have to pay an extra 3% in Stamp Duty on top of the revised rates for each band (even if the property you already own is abroad).