When purchasing a property in the UK a charge is applied to that property dependent on its value. That charge is Stamp Duty (Stamp Duty Land Tax). Until 30th June 2021 there will be no Stamp Duty to pay on homes up to the value of £500,000. The rate of Stamp Duty to pay on homes above the value of £500,000 will be 5% and will apply to the portion of the value between £500,001 and £925,000. An additional rate of 3% remains for buyers who already own residential properties, such as second homes and buy-to-let properties.
| Purchase price of property | Rate of Stamp Duty | Buy to Let/Additional Home Rate* |
|---|---|---|
| £0 - £500,000 | 0% | 3% |
| £500,001 - £925,000 | 5% | 8% |
| £925,001 - £1.5 million | 10% | 13% |
| Over £1.5 million | 12% | 15% |
First time buyers or those moving from their main residence who buy properties up to the value of £500,000 won't have to pay stamp duty on purchases completed by 30th June 2021. For homes valued above £500,000, the excess between £500,001 and £925,000 will be charged at 5%.
| Purchase price | Stamp Duty Rate |
|---|---|
| Up to £250,000 | 0% |
| The next £675,000 (the portion of the property value from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion of the property value from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion of the property value above £1.5 million) | 12% |
| Tax Band | % | Taxable Sum | Tax |
|---|---|---|---|
| less than £500k | 0 | £0 | £0 |
| £500k to £925k | 5 | £675,000 | £33,750 |
| £925k to £1.5m | 10 | £75,000 | £7,500 |
| rest over £1.5m | 12 | £0 | £0 |