We were very excited to hear the announcement from the Chancellor (8th July 2020) that Stamp Duty has been cut on all properties up to £500,000 until 31st March 2021. This is an incredible opportunity for anyone looking to buy a property to make a huge saving.
If you are thinking of moving there has never been a better time. We definitely think this is something to celebrate. We want to make sure you have all the facts and can easily calculate your Stamp Duty following this announcement.
For those of you looking to buy a property above £500,000, Stamp Duty will be charged at 5% on every pound from £500,000 to £925,000. Therefore, if you were considering buying a property for £600,000 you will pay £5,000 in Stamp Duty rather than £20,000 Stamp Duty, we are sure you will agree this is a brilliant saving.
Click here – Calculate you Stamp Duty
The government has provided the following clarification via their gov.co.uk
Government guidance – Stamp Duty Land Tax Temporary Reduced Rates
If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.
You can use the table to work out the Stamp Duty
Property or lease premium or transfer value
Up to £500,000 – 0 SDLT rate
The next £425,000 – 5% SDLT rate
The next £575,000 – 10% SDLT rate
The remaining amount (the portion above £1.5 million) – 12% SDLT rate
From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates set out above.
Higher rates for additional properties
The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.
The following rates apply:
Property or lease premium or transfer value
Up to £500,000 – 3% SDLT rate
The next £425,000 – 8% SDLT rate
The next £575,000 – 13% SDLT rate
The remaining amount (the portion above £1.5 million) – 15% SDLT rate
New leasehold sales and transfers
The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 31 March 2021.
The following rates will apply:
Up to £500,000 – 0
Over £500,000 – 1% SDLT
Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.
On the 1 April 2021 the reduced rates shown in the above tables will revert to the rates of SDLT that were in place prior to 8 July 2020.
Thinking of moving?
Given the changes in Stamp Duty if now is the right time for you to move we would welcome the opportunity to work with you, with 900+ five star reviews from exceptionally happy clients you can be assured of outstanding customer service and expertise. Give us a call on 0330 223 1000 to book a valuation today, we will make sure you are put through to the right Move Revolution office for your town or village in Surrey, Sussex or Kent. We can’t wait to speak with you.