Stamp Duty, otherwise known as Stamp Duty Land Tax (SDLT) is a tax on property or land bought in England and Northern Ireland. You’ll have to pay it if your purchase costs over a certain price.
The rules are different for other areas of the UK. If you’re buying property or land in Scotland, you won’t have to pay stamp duty. Instead, you’ll have to pay a Land and Buildings Transaction Tax.
If you purchased a house in Wales and the sale was completed on or after 1st April 2018, you will instead pay Land Transaction Tax.
This year, to stimulate the property market following the first national lockdown, Chancellor Rishi Sunak announced an amendment to the Stamp Duty rates.
What was the Stamp Duty holiday and when does it end?
What are the new stamp duty rules and when did they change?
As of 8 July 2020, the government has introduced a temporary holiday on stamp duty on the first £500,000 of property sales across England and Northern Ireland.
This means that anyone completing on the sale of a main residence costing up to £500,000 will not pay any stamp duty.
Properties exceeding £500,000 are only taxed on the value exceeding that threshold.
When will the stamp duty holiday end?
The temporary stamp duty holiday is valid on property sales between July 8, 2020 and March 31, 2021.
Currently, there are no plans to extend the scheme.
Housing Minister Christopher Pincher said in the commons in early November: ‘The government does not plan to extend stamp duty relief, and will continue to monitor the property market.’
It is understood at the time of publishing therefore that rates will return to normal on property sales from April 1, 2021.
Gov.UK writes that, from April 2021, the SDLT thresholds will be:
- £125,000 for residential properties
- £150,000 for non-residential land and properties.
MORE : Property prices rocket by £30,000 thanks to stamp duty holiday
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