Stamp Duty is a land tax which must be paid when you buy a property over a certain value.
The amount of tax you must pay depends on the precise value of the property you’re buying, and whether or not it will be your main place of residence.
As a result of the Covid-19 pandemic, Stamp Duty rates have been temporarily changed. The government hopes this ‘holiday’ period will enable more people to buy homes at a time when the market and the economy are facing an uphill battle.
It’s important to note that the percentage of tax is applied only to the amount of money that exceeds £500,000 (in the UK), not the total price of the home. So, for a £700,000 home, you will pay 5% Stamp Duty on the £200,000 which exceeds the half a million threshold
The Stamp Duty rates for UK regions, until March 2021, are as follows.
Until March 2021, Stamp Duty in England and Northern Ireland breaks down as follows:
For a primary residence
- Up to £500,000: 0%
- £500,001 – £925,000: 5%
- £925,001- £1.5m: 10%
- £1.5m+: 12%
For non-primary residence
- Up to £500,000: 3%
- £500,001 – £925,000: 8%
- £925,001- £1.5m: 13%
- £1.5m+: 15%
In Scotland, Stamp Duty is known as Land & Buildings Transaction Tax, and the rates are as follows:
For a primary residence
- Up to £250,000: 0%
- £250,001 – £325,000: 5%
- £325,001 – £750,000: 10%
- £750,001+: 12%
For a non-primary residence
- Up to £250,000: 4%
- £250,001 – £325,000: 9%
- £325,001 – £750,000: 14%
- £750,001+: 16%
In Wales, the current SDLT holiday leaves the rates as follows:
For a primary residence
- Up to £250,000: 0%
- £250,001 – £400,000: 5%
- £400,001 – £750,000: 7.5%
- £750,001 – £1,500,000: 10%
- £1,500,001+: 12%
For a non-primary residence
- Up to £250,000: 3% (but 6.5% between £180,001 and £250,000)
- £250,001 – £400,000: 8%
- £400,001 – £750,000: 10.5%
- £750,001 – £1,500,000: 13%
- £1,500,001+: 15%
