The Temporary Changes to Stamp Duty Land Tax

The Chancellor has announced that from 8th July 2020 until the 31st March 2021 buyers will pay no Stamp Duty Land Tax on the first £500,000 when they move home.

What is Stamp Duty Land Tax?

Stamp Duty Land Tax is a tax paid by those buying a property. The amount of tax varies based on the price and type of the property and the location.

It is paid on land or a property bought for £125,000 or more. For first time buyers, they pay no tax up until the cost reaches £300,000.

For people who have bought a home before, the stamp duty land tax rates were:

2% on £125,001 – £250,000

5% on £250,001 – £925,000

10% on £925,001 – £1.5m

And 12% on any value above £1.5m

What has changed?

The Government have temporarily increased the lower Stamp Duty Land Tax threshold to £500,000, meaning, for any property below this amount you will not need to pay tax.

The lower threshold of £500,000 similarly applies to individuals purchasing additional dwellings (for example buy-to-lets) and to dwellings purchased by companies, but the 3% supplement will continue to apply.

We have a dedicated team of specialists to deal with Stamp Duty Land Tax planning and compliance advice so if you have any questions please get in touch.

Please call us on – 01905 700949