Stamp Duty Land Tax

If you buy a property or land that cost over a certain amount, you must pay Stamp Duty Land Tax (SDLT). The recent Stamp Duty changes may have had an effect on property purchasing, so we’ve compiled a helpful guide on what it means for you.

Stamp Duty Land Tax

If you need further information or assistance, or have questions that have not been answered here, please get in touch with one of our solicitors.

When were the stamp duty changes put into place?

The changes took effect on July 8th 2020, and were in place until October 1st 2021. There were some reductions from July 1st 2021.

Who benefitted from the changes and what were they?

  • All property buyers benefitted, not just first-time buyers

  • Before the changes, those buying a property for under £500,000 (who did not own a second property) did not have to pay stamp duty lax tax until June 30th 2021

  • From July 1st to 30th September 2021, the threshold was reduced to £250,000

What were the stamp duty land tax holiday rates?

Up until June 30th 2021, the rates were as follows:

  • Up to £500,000 – zero

  • The next £425,000 (from £500,001 to £925,000) – 5%

  • The next £575,000 (from £925,001 to £1.5 million) – 10%

  • £1.5 million and above – 12%

From July 1st 2021:

  • Up to £250,000 – zero

  • The next £675,000 (from £250,001 to £925,000) – 5%

  • The next £575,000 (from £925,001 to £1.5 million) – 10%

  • £1.5 million and above – 12%

When is SDLT payable and who is responsible for paying it?

SDLT must be paid at the point of completion; the date of your completion would have/will determine the rates. It is payable by the buyer, not the seller.

If you think you have been charged at the wrong rate, speak to your solicitor. They will update your rate before completion, and provide you with an updated financial statement.

What if I buy another property?

The higher rate of tax is unchanged – those buying additional properties will still pay the surcharge on transactions over £40,000.