Stamp Duty

The Thresholds of stamp duty

This is where SDLT (Stamp duty land tax) starts to apply. The current SDLT threshold for residential properties is £500,000. This changes on 1 April 2021.

The threshold for non-residential land and properties is £150,000.

On Property purchases on or after 1 April 2021

The stamp duty thresholds will be:

  • £125,000 for residential properties
  • £150,000 for non-residential land and properties

These thresholds will revert to the same as they were before 8 July 2020 when the stamp duty holiday was introduced. This runs until March 31st 2021.

First-time buyers - From 1 April 2021, you will pay less or no tax if both the following apply:

  • you, and anyone else you’re buying with, are first-time buyers
  • the purchase price is £500,000 or less
 

Rates from 8 July 2020 to 31 March 2021

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
 

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%


Example

In March 2021 you buy a house for £625,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £500,000 = £0
  • 5% on the remaining £125,000 = £6,250
  • total SDLT = £6,250

Use the SDLT calculator to work out how much tax you’ll pay.

 

Rates from 1 April 2021

These rates also apply if you bought a property before 8 July 2020.

You can also use this table to work out the SDLT for the purchase price of a lease (the ‘lease premium’).
 

Property or lease premium or transfer value  SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
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%