Published: 11/08/2020If you’re buying a home in England you will now pay a reduced rate of Stamp Duty Land Tax (SDLT) until 31 March 2021. You will pay no Stamp Duty if the amount you pay for your main home is under £500,000. If you’re purchasing additional properties you will still have to pay an extra 3% in Stamp Duty on top of the revised rates for each band.
How much is Stamp Duty?
There are several rate bands for Stamp Duty.
The tax is calculated on the part of the property purchase price falling within each band.
Until 31 March 2021, you’ll pay no Stamp Duty on the purchase of your main property costing up to £500,000. If the property you’re buying costs more than £500,000, you’ll pay Stamp Duty based on the revised rate bands, below.
For example, if you buy a house for £575,000, the Stamp Duty Land Tax you owe is calculated as follows:
- 0% on the first £500,000 = £0
- 5% on the final £75,000 = £3,750
This is a saving of £15,000 based on the Stamp Duty rates that were in place before 8 July 2020.