On 8 July 2020, HMRC announced that reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive. On 1 April 2021, the reduced rates shown below will revert to the rates of SDLT that were in place prior to 8 July 2020.
This temporary measure comprises part of the government's COVID-19 pandemic package.
HMRC released a policy paper on 10 July 2020.
First home
The following rates apply for a first home purchased during the aforementioned period:
| Property or lease premium or transfer value (GBP) | SDLT rate (%) |
|---|---|
| up to 500,000 | 0 |
| portion from 500,001 to 925,000 | 5 |
| portion from 925,001 to 1.5 million | 10 |
| portion above 1.5 million | 12 |
Additional dwelling
The 3% higher rate for purchases of additional dwellings applies on top of the above-mentioned revised standard rates. Hence, the following rates apply for an additional dwelling purchased during the above-mentioned period:
| Property or lease premium or transfer value (GBP) | SDLT rate (%) |
|---|---|
| up to 500,000 | 3 |
| portion from 500,001 to 925,000 | 8 |
| portion from 925,001 to 1.5 million | 13 |
| portion above 1.5 million | 15 |
New leasehold sales and transfers
The following rates apply:
| Net present value of any rent (GBP) | SDLT rate (%) |
|---|---|
| up to 500,000 | 0 |
| over 500,000 | 1 |
The HMRC policy paper, released on 10 July 2020, can be accessed here.