Stamp duty land tax : Reduced rates

7
Posted 9th Jul
Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.

Residential Rates on purchases from 8 July 2020 to 31 March 2021
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.

You can use the table to work out the SDLT due:

Property or lease premium or transfer value SDLT rate
  • Up to £500,000 - Zero
  • The next £425,000 (the portion from £500,001 to £925,000) - 5%
  • The next £575,000 (the portion from £925,001 to £1.5 million) 10%
  • The remaining amount (the portion above £1.5 million) 12%


The calculator is here :
https://www.tax.service.gov.uk/cal…ax/#/intro
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
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7 Comments
If we sell one *investment residential property , and then reinvest the same money by purchasing some other property, Do we have to pay CGT ( Capital Gain Tax) :/
Felix_110/07/2020 00:59

If we sell one *investment residential property , and then reinvest the …If we sell one *investment residential property , and then reinvest the same money by purchasing some other property, Do we have to pay CGT ( Capital Gain Tax) :/


You do, on any gain you’ve made above original purchase price. I’m in the same boat at the moment. CGT is the worst tax ever
No surprise that my neighbour house that has been on the market for 2 weeks has just had almost £25K ADDED to the asking price as it now sits £499995!

He said they are still had the money and now they are not paying it in taxes....!
groenleader10/07/2020 09:30

No surprise that my neighbour house that has been on the market for 2 …No surprise that my neighbour house that has been on the market for 2 weeks has just had almost £25K ADDED to the asking price as it now sits £499995!He said they are still had the money and now they are not paying it in taxes....!


Let’s just hope that the owners of the property they then go on to buy have done the exact same thing.
groenleader10/07/2020 09:30

No surprise that my neighbour house that has been on the market for 2 …No surprise that my neighbour house that has been on the market for 2 weeks has just had almost £25K ADDED to the asking price as it now sits £499995!He said they are still had the money and now they are not paying it in taxes....!



You are right it’ll only serve to increase the price of houses. I’ve fell really lucky in we bought in the middle of lockdown but still haven’t completed.
Toptrumpet10/07/2020 10:32

Let’s just hope that the owners of the property they then go on to buy h …Let’s just hope that the owners of the property they then go on to buy have done the exact same thing.


Oh more then likely i think agents, who get comissioned based on the sale price are suggesting to put up the prices!
My friend is renting with her boyfriend, if they buy a property to rent out and stay at there existing address. Do they have to pay Stamp duty? Or is it classed as a second property because they won't be living there. Thanks
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