From the 8th July 2020 to the 31st March 2021 inclusive, the UK government has temporarily raised the tax threshold for Stamp Duty Land Tax (SDLT) from £125,000 to £500,000 to help buyers, including first timer buyers, overseas buyers and investors, buy to let investors as well as companies in their purchase of properties in England and Northern Ireland.*

The Stamp Duty Land Tax (SDLT) “holiday” was extended by another three months, it will now end on the 30th June 2021 inclusive instead of the 31st March 2021.

The nil rate band will be £250,000 – double its standard level – until the end of September 2021. The usual level of £125,000 will be returned from the 1st October 2021.

New rates of Stamp Duty Land Tax (SDLT) for purchasers of residential property in England and Northern Ireland* who are not resident in the UK. The new rates will be 2 percentage points higher than those that apply to purchases made by UK residents, and will apply to purchases of both freehold and leasehold property as well as increasing SDLT payable on rents on the grant of a new lease from the 1st April 2021.

Our property conveyancing team at Chan Neill Solicitors has summarised the temporary SDLT relief for you in a straightforward way.  

1. SDLT is a standard tax required by the government paid by the buyer when purchasing a residential property in England and Northern Ireland*.

2. SDLT applies to both freehold and leasehold properties, newbuild or existing properties, commercial or residential properties.

3. SDLT is a tiered, threshold system, where the higher the property value, the higher stamp duty you are required to pay.

4. If you or your spouse own more than one property worldwide (have a property registered under your name or your spouse’s name), you pay an additional 3% surcharge on top of the standard rates for SDLT.

Purchase of sole property (or replacement of existing main dwelling) until 30th June 2021 inclusive.

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%

Purchase of an additional property until 30th June 2021 inclusive.

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%

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.       

At Chan Neill Solicitors we are happy to advise our clients regarding complicated legal and tax issues, purchases, sales and re-financing of properties. We can also advise you on moving money from abroad to the United Kingdom.  For any further information please contact us at 

* In Scotland buyers pay the Land and Buildings Transaction Tax and in Wales buyers pay Land Transaction Tax.

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