
Starting a new business? Get 40% off our accountancy services for 3 months! 😀
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.
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 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.
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% |
The temporary changes launched immediately, and will apply to the sale of eligible property and land:
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.Â
The Brexit transition period is over, and the rules for moving goods between the UK and the EU are now different. Some…
Read MoreLow-Value Consignment Relief (LVCR) was a type of tax relief for import VAT. LVCR meant that UK businesses didn’t pay import VAT…
Read MoreThe end of the Brexit transition period means there are changes which VAT registered businesses must be aware of. The changes include…
Read MoreThe number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?
Please contact our sales team if you’re unsure
It is unlikely you will need this service, unless you are voluntarily registered for VAT.
Are you sure this is correct?
Call us on 020 3355 4047 if you’re not sure.