The stamp duty holiday was announced by the chancellor not too long ago. Usually in England, you would be expected to pay Stamp Duty Land Tax (SDLT) on increasing portions of a property’s price above £125,000.00. This is calculated differently during the period that the relief is applicable. In a bid to kickstart residential conveyancing, the government’s announcement will be welcomed by buyers new and returning. If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.
How is SDLT calculated on the main residence?[table id=1 /]
(Accurate as of July 2020, per the government’s online advice)
Let’s assume you’re buying a residential property for £700,000.00.
You would pay no SDLT on the first £500.000.00.
You would pay 5% on the £200,000.00 above the nil rate at £10,000.00
How much will I pay?
You may find it useful to use the government’s own stamp duty calculator for a breakdown of how much you would pay for your home. Chances are, it will be considerably lower than usual so it well worth taking advantage of this scheme whilst it lasts. If you’re already in the process of buying your home, then it would be worth speaking to your solicitor to assess your eligibility.