Stamp Duty Land Tax: temporary reduced rates
Reduced rates of Stamp Duty Land Tax (SDLT) will apply for residential properties purchased from 8 July 2020 until 30 June 2021 and from 1 July 2021 to 30 September 2021 inclusive.
Overview
The temporary increase to the nil rate band for Stamp Duty Land Tax (SDLT), which is the rate before you start paying SDLT on residential property has been extended.
Rather than ending on 31 March 2021, the temporary nil rate band of £500,000 will be in place until 30 June 2021. Then from 1 July 2021 to 30 September 2021 the nil rate band will be £250,000. The nil rate band will return to the standard amount of £125,000 on 1 October 2021.
The rate of SDLT which applies to your purchase depends on the date that you complete your property purchase and not the date that you exchanged contracts.
Residential Rates on purchases from 8 July 2020 to 30 June 2021
If you purchase a residential property between 8 July 2020 to 30 June 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% |
From 8 July 2020 to 30 June 2021 the special rules for first time buyers are replaced by the reduced rates set out above.
Use the SDLT calculator to work out how much tax you’ll pay.
Residential Rates on purchases from 1 July 2021 to 30 September 2021
If you purchase a residential property between 1 July 2021 to 30 September 2021, you only start to pay SDLT on the amount that you pay for the property above £250,000.
You can use the table to work out the SDLT due.
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £250,000 | zero |
| The next £675,000 (the portion from £250,001 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% |
From 1 July 2021 the special rules and rates for first time buyers apply, including first time buyers purchasing property through a shared ownership scheme.
Use the SDLT calculator to work out how much tax you’ll pay.
Higher rates for additional properties
The 3% higher rate for purchases of additional dwellings applies on top of temporary reduced rates above for the period 8 July 2020 to 30 June 2021 and also for the period 1 July 2021 to 30 September.
The following rates apply:
Higher Rates from 8 July 2020 to 30 June 2021
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £500,000 | 3% |
| The next £425,000 (the portion from £500,001 to £925,000) | 8% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 13% |
| The remaining amount (the portion above £1.5 million) | 15% |
Higher Rates from 1 July 2021 to 30 September 2021
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £250,000 | 3% |
| The next £675,000 (the portion from £250,001 to £925,000) | 8% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 13% |
| The remaining amount (the portion above £1.5 million) | 15% |
From 1 October 2021 the higher rates will then apply on top of the standard rates of SDLT.
Use the SDLT calculator to work out how much tax you’ll pay.
New leasehold sales and transfers
The nil rate band which applies to the ‘net present value’ of any rents payable for residential property is also increased to £500,000 from 8 July 2020 until 30 June 2021. From 1 July 2021 to 30 September 2021 the nil rate band will then be decreased to £250,000.
The following rates will apply:
From 8 July 2020 to 30 June 2021
| Net Present Value of any Rent | SDLT rate |
|---|---|
| Up to £500,000 | Zero |
| Over £500,000 | 1% |
From 1 July 2021 to 30 September 2021
| Net Present Value of any Rent | SDLT rate |
|---|---|
| Up to £250,000 | Zero |
| Over £250,000 | 1% |
Companies as well as individuals buying residential property below the nil rate band thresholds shown in the above tables will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.
On the 1 October 2021 the temporary rates of SDLT will revert back to the standard rates that were in place prior to 8 July 2020.
Updates to this page
Published 8 July 2020Last updated 8 June 2021 + show all updates
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Guidance about when the rate of Stamp Duty Land Tax which applies to your purchase has been added.
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This page was updated to reflect the changes in the Budget of 3 March 2021.
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First published.