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In England & Northern Ireland, Stamp Duty Land Tax is the tax individuals pay when purchasing land or property over a certain amount, which stood at £125,000 for purchasers of residential properties who have bought before. For first time buyers, this amount was £300,000 for properties worth up to £500,000.

The SDLT rates that have applied to date for buyers who have previously purchased a property in England & Northern Ireland are shown below:

Property value SDLT rate
Up to £125,000  0%
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1.5m 10%
>£1.5m 12%

The Chancellor has announced on 8th July 2020 that with immediate affect there will be a temporary increase of the Nil Rate Band of Stamp Duty Land Tax (SDLT) in an attempt to provide a boost to the UK housing market. Therefore, for any property purchase which completes by 31st March 2021 in England & Northern Ireland only – no Stamp Duty will apply for residential properties under this value. Whilst these changes will apply to purchases of second homes and additional properties, a 3% surcharge based on the value of the property will still be applicable.

According to HM Land Registry’s website, the average price of a property in England in January 2020 was £247,355. Therefore prior to 8th July, Stamp Duty would have amounted to £2,477 (£0 on the first £125,000; 2% on the remaining £122,355). In London, the average price was £476,588 which would mean a saving now of £13,829 (£0 on the first £125,000; 2% up to £250,000 and 5% on the remaining £226,588). For an investor in London, the Stamp Duty cost would have been £28,127, but now has reduced to £14,298.

If you are about to move home or are thinking of purchasing a property you can find out how we support you on our website or you can contact the Brookson Financial team today to find out more: 058 1280 


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