Stamp Duty Land Tax: Temporary reduced rates
July 18, 2020
On Wednesday, 8th July 2020, Chancellor Rishi Sunak announced a reduction in stamp duty rates in a bid to stimulate the housing market.
If you purchase a residential property between 8th July 2020 to 31st March 2021, you will only start paying stamp duty on the amount that you pay for the property above £500,000. The rates of stamp duty land tax can be found in the table below:
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £500,000 | Zero |
| The next £425,000 (the portion from £500,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
The rates for first time buyers have been replaced by the reduced rates above.
Higher Rates for additional properties
Limited Companies and Individuals buying their second property must pay the 3% higher rate for any residential property they buy if:
- the property is £40,000 or more
- there is no lease on the property in place with more than 21 years
The following rates now apply:
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £500,000 | 3% |
| The next £425,000 (the portion from £500,001 to £925,000) | 8% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 13% |
| The remaining amount (the portion above £1.5 million) | 15% |
On the 1st April 2021, the stamp duty rates will revert back to the rates of SDLT in place prior to 8th July 2020.
Can you raise SEIS/EIS if you have more than one company? Learn HMRC rules on groups, connections, and control — and how founders can stay compliant.
In today’s hyper‑efficient business world, it’s tempting to lean entirely on AI. Let it automate forecasting, churn through data, and generate reports—and voilà, your finance department is running like clockwork, right?
Learn how investors claim SEIS/EIS relief and what founders must provide. Certificates, timelines, FAQs, and pitfalls explained in plain English.
