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On 8th July, the Chancellor, Rishi Sunak, announced a raft of measures designed to stimulate the economy as the UK emerges from the coronavirus pandemic.
A standout initiative is that of the residential property Stamp Duty Land Tax (SDLT) holiday, which will operate from 8th July 2020 to 31 March 2021 (inclusive). During this period, purchasers of residential properties in England will benefit from reduced rates or, indeed, in a significant proportion of cases, may pay no SDLT at all.
What does the SDLT landscape look like now?
Figures and percentages can be confusing, so we have produced some tables to show what SDLT liability new purchases will attract:
Normal Residential SLDT rates
(applicable to purchases by individuals pre-8 July 2020 and again from 1 April 2021)*
Purchase Price | SDLT rate |
| The first £125,000 | 0% (3% in the case of second homes**) |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% (5% in the case of second homes**) |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% (8% in the case of second homes**) |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% (13% in the case of second homes**) |
| The remaining amount (any portion above £1.5 million) | 12% (15% in the case of second homes**) |
SDLT holiday rates
(applicable to purchases by individuals from 8 July 2020 to 31 March 2021)*
Purchase Price | SDLT rate |
| The first £500,000 | 0% (3% in the case of second homes**) |
| The next £425,000 (the portion from £500,001 to £925,000) | 5% (8% in the case of second homes**) |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% (13% in the case of second homes**) |
| The remaining amount (any portion above £1.5 million) | 12% (15% in the case of second homes**) |
For guidance on residential property transactions, contact Lindsey Carter, our conveyancing practitioner.
* Separate rules/higher rates apply to purchases by companies and other corporate entities but companies buying residential properties will also benefit from the temporary changes.
**the 3% uplift for second homes does not apply where the property you’re buying is replacing your main residence and that has already been sold.
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