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Stamp Duty Land Tax: How much do you have to pay now?

View profile for Paul Harris
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Stamp Duty Land Tax (‘SDLT’) is a self-assessment tax paid on property purchases and is payable by everyone purchasing a residential or non-residential property in England and Northern Ireland, including overseas buyers, corporate bodies and non-natural persons. SDLT is payable to HMRC within 14 days from of completion of a transaction in order to avoid late filing penalties. 

The temporary reduced rates of SDLT which were first introduced on 8 July 2020 to 30 June 2021 and later adjusted on 1 July 2021 are now coming to an end, with SDLT returning to its pre-COVID-19 rates.

From 1 October 2021, the following thresholds will apply for residential property:

  • £0-£125,000 = 0%
  • £125,001-£250,000 = 2%
  • £250,001-£925,000 = 5%
  • £925,001-£1,500,000 = 10%
  • £1,500,001+ = 12%

If you are buying an additional property which would result in you owning more than one property, you will usually be required to pay an additional 3% on top of SDLT rate. You will not pay the additional 3% SDLT if the property you are purchasing replaces your main residence.

The 0% stamp duty threshold will remain at £300,000 for first time buyers purchasing a property worth up to £500,000. Different rates apply if you are not a UK resident.

From 1 October 2021, the following thresholds will apply for commercial property:

  • £0 - £150,000 = 0%
  • £150,001 - £250,000 = 2%
  • £250,000 = 5%

The SDLT holiday provided a huge incentive for buyers and sellers, with UK house prices increasing by 8.9% over the year to April 2021. It remains to be seen whether the property market will remain buoyant following the end of the SDLT holiday and furlough.

If you are interested in buying or selling a property, please call us on 01242 574244 to discuss with a member of our residential / commercial property departments.