Updated: 8 July 2020
The Chancellor has confirmed that the Stamp Duty threshold will be increased to £500,000
immediately until March 31 2021.
The Government will temporarily increase the nil-rate band of residential Stamp Duty in England and Northern Ireland from £125,000 to £500,000.
The Stamp Duty Land Tax (SDLT) is a charge placed on all residential property purchases over £125,000 in England, Wales and Northern Ireland. From April 2016 an additional 3% SDLT surcharge is payable on a second home or buy to let property with a purchase price of £40,000 or above. Please see the chart below for current charges.
If you are a First Time Buyer then as of 22nd November 2017, there is no stamp duty payment due on purchases up to £300,000.
|Property Value||Current Stamp Duty Rate||Rate for BTL and 2nd Properties|
|Up to £125,000||0%||3%|
|£125,001 to £250,000||2%||5%|
|£250,001 to £925,000||5%||8%|
|£925,001 to £1.5m||10%||13%|
How is Stamp Duty (SDLT) calculated ?
Example: If you purchase a property for £275,000, the SDLT you would owe is calculated as follows
|Property Value||Current Stamp Duty Rate||Cost||Rate for BTL and 2nd Properties||Cost|
|On the First £125k||0%||£0||3%||£3,750|
|On the next £125k||2%||£2,500||5%||£6,250|
|On the Final £25k||5%||£1,250||8%||£2,000|
|Total Stamp Duty||£3,750||£12,000|
For more information on SDLT we would recommend you speak to your solicitor or a tax advisor.
Please note information correct as of Nov 2017