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Chancellor Rishi Sunak has announced temporary changes to Stamp Duty thresholds as part of a wider series of measures.

Intended to stimulate UK economic recovery following the coronavirus pandemic, the Coronavirus Recovery Plan targets several areas, including property.

With lockdown restricting movement and social contact, the housing market came to an abrupt halt. The chancellor has temporarily changed when stamp duty is paid to help restart the sector. The new thresholds give an incentive to house buyers to act within the next eight months or so.

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:

The temporary revision to stamp duty means that the thresholds have changed.

Stamp duty rates and thresholds for buyers purchasing residential properties under the Coronavirus Recovery Plan
Stamp duty threshold 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:

The rates are a bit different for people who are buying additional properties, essentially an extra 3% on the primary rates. We’ve included the rates in a table below.

Higher stamp duty rates and thresholds for buyers purchasing additional properties under the Coronavirus Recovery Plan
Stamp duty threshold 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 immediately, and will apply to the sale of eligible property and land:

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 will also be covered by the temporary changes.

Apart from these changes, the manner in which stamp duty is paid stays the same. Read our article for more information about how and when to pay stamp duty. 

About The Author

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.

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