Stamp Duty Land Tax (SDLT) new temporary reduced rates applicable from 8th July 2020 until 31st March 2021 inclusive

Property Buying

This is great news and should help to kick start the housing market and ultimately the economy.

The housing market as an industry includes mortgage advisers, estate agents, surveyors, finance lenders, solicitors, removal companies.  It also has a ‘knock-on effect’ and includes furniture retailers, home furnishing retailers, white goods retailers as well as painters & decorators, garden maintenance, DIY retailers etc.

It could also help the rental market as it might encourage buy to let landlords increase their portfolio.  The more properties available to rent the more likely hood of rents charged remaining stable.

Details of the new rates are as follows:-

Main Home Residential Purchases.

In a nutshell, SDLT on all purchases of main home residential properties will commence at £500,001 and that is whether you are a first-time buyer or a home mover.  E.g. the tax payable on purchases up to £500,000 will be zero.

For purchase prices between £500,001 &  £925,000 the calculation is:-  zero up to £500,000, the next £425,000 will be taxed at 5%.

For purchase prices between £925,001 and £1.5 million, the calculation is:-

First £500,000 at zero

Next £425,000 at 5%

Next £575,000 at 10%

For purchase prices above £1.5 million, the remaining portion will be taxed at 12%

For second homes or Buy to Let Properties 

For purchase prices up to £500,000, the tax will be calculated at 3%

For purchase prices between £500,001 & £925,000 the calculation will 3% up to £500,000, the next £425,000 will be taxed at 8%.

For purchase prices between £925,001 and £1.5 million, the calculation is:-

First £500,000 at 3%

Next £425,000 at 8%

Next £575,000 at 13%

For purchase prices above £1.5 million, the remaining portion will be taxed at 15%

If you are looking to buy, sell or raise property related finance please give me a call 01323 332452.  Amber Property UK has a wealth of knowledge and expertise at your disposal.

Lesley-Anne Jones Co-Founding Director, Amber Property UK