Stamp Duty Land Tax (SDLT) – Temporary Reduced Rates
Those purchasing residential property in England and Northern Ireland currently benefit from reduced rates of SDLT.
The reduction was scheduled to come to an end on 31 March 2021, but has been extended in its current form until 30 June 2021.
In an attempt to avoid a ‘cliff-edge’ return to previous rates, the “0% band” will be reduced to £250,000 with effect from 1 July 2021, and will then return to its previous level of £125,000 from 1 October 2021.
The following rates will apply where the transaction is not a ‘higher rate transaction’ (broadly where the purchaser is an individual who either does not own another property, or who is replacing their main residence), and where the transaction completes by 30 June 2021:
Property price SDLT Rate
Up to £500,000 0%
The next £425,000 5%
The next £575,000 10%
The remaining amount 12%
Where the transaction is a higher rate transaction (for example where the purchaser owns other property and is not replacing their main residence), the following rates apply where the transaction completes by 30 June 2021:
Property price SDLT Rate
Up to £500,000 3%
The next £425,000 8%
The next £575,000 13%
The remaining amount 15%
The following rates will apply where the transaction is not a ‘higher rate transaction’ and where the transaction completes between 1 July 2021 and 30 September 2021:
Property price SDLT Rate
Up to £250,000 0%
The next £675,000 5%
The next £575,000 10%
The remaining amount 12%
Where the transaction is a higher rate transaction, the following rates apply where the transaction completes between 1 July 2021 and 30 September 2021:
Property price SDLT Rate
Up to £250,000 3%
The next £675,000 8%
The next £575,000 13%
The remaining amount 15%
For completeness, first time buyers will continue to benefit from a £300,000 0% band.
