Stamp Duty Land Tax relief

  • Ownership: All purchases of residential property
  • Headline benefits: Temporary increase of the nil rate band of Stamp Duty Land Tax from £125,000 to £500,000 until 30 June 2021.
  • Headline requirements: All purchases of residential property until 30 June 2021.

Overview

In July 2020, the nil rate band (the threshold from which no SDLT is payable) temporarily increased from £125,000 to £500,000. This applies to all purchases of residential property.

It was due to end on 31 March 2021, but the Chancellor has announced that this will be extended until 30 June 2021.

To smooth the transition back to the standard rates, from 1 July 2021 until 30 September 2021, the nil rate band will be stepped down to £250,000. The nil rate band will return to the standard rate of £125,000 from 1 October 2021.

When the nil rate band steps down to £250,000, the comparative advantage for first time buyers will return as the nil rate band for first time buyers buying a property of £500,000 or under is £300,000.

Find out more about the temporary relief.

Guidance for First Time Buyers

Stamp Duty Land Tax (SDLT) is a tax to pay if you buy a property in England or Northern Ireland.

Different rates of SDLT are charged on the portion of a property’s value within price bands.

For people who are not buying their first home, SDLT usually only applies to purchases of residential properties over £125,000.

You get a relief from SDLT if you (and the person you are buying with if you are buying with someone else) are first-time buyers purchasing a residential property of £500,000 or less. This relief means that first-time buyers don’t pay any SDLT on purchases of £300,000 and below.

First-time buyers who buy a property between £300,000 and £500,000, pay SDLT at a rate of 5% on the amount above £300,000.

Property Value SDLT rate for first time buyers
£0 – £300,000 0%
The next £200,00 (the portion from £301,001 to £500,000) 5%

You can find out more about the relief for first-time buyers.

Until 30 June 2021, there is a temporary reduction to the SDLT rates and if you are buying your first home you can pay up to £500,000 for a property before paying SDLT. Find out more about the temporary relief.

For people who are not first-time buyers, the different rates of SDLT charged on the portion of a property’s value within each price band is shown below.

Property Value Standard SDLT rates
Up to £125,000 0%
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 – £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

 

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Stamp Duty Calculator

Use the calculator to work out how much stamp duty land tax you’ll pay when buying a home.