SDLT reduced until March 2021
The Chancellor’s announcement of a Stamp Duty (SDLT) holiday means that the majority of residential property purchases will now fall below the threshold. Home buyers, particularly in London and the South East, will be able to make substantial savings.
Previously, the threshold for paying SDLT was £125,000 if you had already owned a property. First time buyers had nothing to pay unless their property cost more than £300,000.
The changes currently apply to property purchases in England and Northern Ireland.
What are the new SDLT rates?
From 8th July 2020 until 31st March 2021, home buyers will pay no SDLT on properties worth up to £500,00. This applies whether you are a first time buyer or have bought previously.
Property value – SDLT rate:
*Up to £500,000 – Zero
*From £500,001 to £925,000 – 5%
*From £925,001 to £1.5 million – 10%
*Above £1.5 million – 12%
There is a useful SDLT calculator on the Government website here.
What if I am buying an additional property?
If you already own property, the new rules will apply, but the 3% surcharge in place under the previous rules remains.
So for additional property purchases up to £500,000, the SDLT rate will be 3%.
*From £500,001 to £925,000 – 8%
*From £925,001 to £1.5 million – 13%
*Above £1.5 million – 15%
When do the changes come in?
The changes apply immediately and clients of PM Property Lawyers don’t have to do anything. For property purchases that are in progress and yet to complete, we will amend your bill according to the new rules.
If you are considering moving and would like a quote for our conveyancing services, you can do this instantly here.
If you are an existing client and you have any queries, please get in touch with your property lawyer or call us on 0114 249 6926 or email firstname.lastname@example.org.