Stamp Duty Land Tax: temporary reduced rates

July, 2020

Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.

Residential Rates on purchases from 8 July 2020 to 31 March 2021

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay Stamp Duty Land Tax (SDLT) on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before. 

You can use the table to work out the Stamp Duty Land Tax (SDLT) due: 

Property or lease premium or transfer value - 

Stamp Duty Land Tax 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%

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates set out above.

Use the Governments Stamp Duty Land Tax calculator to work out how much tax you’ll pay.

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

The following rates apply:

Property or lease premium or transfer value - 

Stamp Duty Land Tax 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%

New leasehold sales and transfers

The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021.

The following rates will apply:

Net Present Value of any Rent - 

Stamp Duty Land Tax Rate

Up to £500,000 Zero
Over £500,000 1%


Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% Stamp Duty Land Tax (SDLT) charge.

On the 1 April 2021 the reduced rates shown in the above tables will revert to the rates of Stamp Duty Land Tax (SDLT) that were in place prior to 8 July 2020.

Published 8 July 2020

Source: Gov.uk

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