Stamp Duty Land Tax (SDLT) is payable on all homes over a certain purchase price in England. Reduced rates apply from 8 July 2020 until 31 March 2021. The amount you will have to pay will be based upon the selling price of your home.
Currently the scale charges (which apply regardless of whether you are buying your first home or have owned a property before) are as follows:
Nothing on the first £500,000 of the property price
5% on the next £425,000
10% on the next £575,000
12% on the rest (above £1.5 million)
After the expiry of the current “stamp duty holiday” from 1 April 2021, the amount of Stamp Duty which will be payable will depend on whether you are buying your first home or whether you have owned property before.
If you have owned property before, SDLT is payable on all homes with a purchase price of over £125,000. The scale of charges will be as follows;
Nothing on the first £125,000 of the property price
2% on the next £125,000
5% on the next £675,000
10% on the next £575,000
12% on the rest (above £1.5 million)
If you are a first time buyer in England, from 1 April 2021 you won’t pay any Stamp Duty Land Tax up to £300,000 and 5% on the portion from £301,000 to £500,000. A first time buyer is someone who has never owned freehold or leasehold interest in a dwelling before and who is purchasing their only or main residence. Residential property anywhere in the world is counted when determining whether someone is a first-time buyer. Where there are joint purchasers, all purchasers would need to be first time buyers. The charges for first time buyers in England from April 2021 will be:
Nothing on the first £300,000 of the property price
5% on £301,000 to £500,000
Standard rates from £501,000 and above
NB – these figures are set by the Government, and are subject to change.