What Does the Temporary Change to Stamp Duty Land Tax Mean for Me?

The stamp duty tax on property purchases has been temporarily changed in England and Northern Ireland.

The temporary reduction in stamp duty property tax first formed part of the UK government’s Coronavirus Recovery Plan, and was extended again in the Spring 2021 Budget.

The temporary revision to stamp duty thresholds have been extended until

30th June 2021.

Lockdown restrictions on social contact were causing issues for the housing market. To help the sector, the thresholds for paying stamp duty in England and Northern Ireland have temporarily changed.

What are the temporary stamp duty thresholds?

Stamp Duty Land Tax (SDLT) is a tax paid by buyers purchasing property or land over a certain value. The amount of stamp duty that you pay normally depends on a combination of whether you are a first-time buyer and the value of the property or land.

The temporary threshold for stamp duty in England and Northern Ireland	You will pay stamp duty at:
Up to £500,000	0%
from £500,001 to £925,000	5%
£925,001 to £1.5 million	10%
above £1.5 million	12%

The amount of stamp duty that you pay isn’t applied as a flat rate based on the amount that you pay for the property. Instead, you’ll only pay stamp duty at the rate within each range.

This means that if you buy a house for £600,000 then under the temporary limits you will pay:

No stamp duty on the first £500,000.
Stamp duty at 5% on the next £100,000.

If you buy an additional property, you will pay an additional rate as well as paying stamp duty. Like stamp duty, the additional rates are charged in bands which we’ve shown in the table below.

Temporary stamp duty threshold for additional properties in England and Northern Ireland	You will pay stamp duty at:
Up to £500,000	3%
from £500,001 to £925,000	8%
£925,001 to £1.5 million	13%
above £1.5 million	15%

When is the coronavirus stamp duty change available?

The temporary changes launched 8th July 2020, and have been extended until 30th June 2021.

Does the temporary stamp duty cut apply to Buy-To-Let properties?

Yes, it’s good news for the BTL sector. Buyers purchasing properties in order to let them out are also covered by the temporary changes.

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Elizabeth Hughes

A content writer specialising in business, finance, software, and beyond. I'm a wordsmith with a penchant for puns and making complex subjects accessible. Learn more about Elizabeth.