Your Obligations & Legislation



Stamp Duty Land Tax Update

October 27, 2021
Information published was correct at the time of writing

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UK chancellor, Rishi Sunak announced in his March Budget that the Stamp Duty Land Tax (SDLT) holiday would be tapered from the 1st July 2021 ahead of its full withdrawal in October. Now this date has passed, from 1 October the 0% SDLT threshold has returned to £125,000, or £300,000 for first-time buyers purchasing a property worth up to £500,000. If you are buying-to-let, as a landlord you will have to pay SDLT if the income from a short term property let (up to seven years), residential tenancy or lease is above the threshold.

FREEHOLD AND LEASEHOLD PROPERTIES
SDLT is a tax payable when you buy a residential property or a piece of land in England or Northern Ireland over a certain price. It is calculated as a percentage of the property you are buying and applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage. If you’re buying a property in Scotland, you will pay Land and Buildings Transaction Tax (LBTT) and in Wales Land Transaction Tax (LTT) instead of Stamp Duty.

SDLT FROM 1 OCTOBER 2021
From October, the rates of SDLT have returned to their pre-pandemic levels.
Potential buyers should note that the standard rate doesn’t necessarily apply to them, as there are the following exceptions to be aware of:

• Buyers who already own a property will pay a 3% surcharge on additional property purchases
• Non-UK residents will pay a 2% surcharge on any property they buy
• First-time buyers will pay 0% on the portion of the property up to £300,000 and 5% on the portion of the property between £300,001 and £500,000, unless the total property value is over £500,000, in which case the standard rates will apply

SDLT RATES FROM 1 OCTOBER 2021
These rates also apply if you bought a property before 8 July 2020

HIGHER SDLT RATES FOR ADDITIONAL PROPERTIES
You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

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