What is Stamp Duty Land Tax (SDLT)?
Stamp duty is a tax payable on property or land purchases in England or Northern Ireland.
You’ll pay the duty on property purchases (for your main residential home) on more than £125,000 or, if it’s a second property, on purchases more than £40,000.
Different taxes apply in Scotland and Wales, currently.
How much Stamp Duty Land Tax will I pay?
The amount of stamp duty you’ll pay depends on the value of the property you’re buying. The duty is levied according to the purchase price.
If it’s your residential home, you’ll pay:
0% up to £125,000
2% on the amount between £125,001 and £250,000
5% on the amount between £250,001 and £925,000
10% on the amount between £925,001 and £1,500,000
12% on anything over £1,500,001
It sounds complicated, but here’s a stamp duty calculator, courtesy of Gov.UK: Stamp Duty Calculator
You will pay an additional 3% Stamp Duty if you’re buying a property to rent out (investment property)or if you’re buying a second home or a holiday home.
In other words, if you’re buying a property that isn’t your MAIN residence.
You would need to select the 2nd property option when using the stamp duty calculator.
On 8th July 2020, the government announced a Stamp Duty holiday on purchases up to £500,000 for both first time buyers and next time buyers. The holiday will last until 31st March 2021 and is aimed to drive the property market out of the depression left by the Covid-19 pandemic.
2nd property purchases will also see a benefit. They will only attract the 3% surcharge on property prices up to £500,000.
How will the Stamp Duty Holiday Work?
Please see this article provided by the BBC: BBC Article
Heide provided a video when the Holiday was announced.
If you’d like any help then please get in touch!