Stamp Duty Land Tax (SDLT) is a tax levied on the purchase of property in England and Northern Ireland.
SDLT is charged at different rates depending on the purchase price of a property. There are a number of stamp duty tax bands with rates rising from lower to higher bands.
A stamp duty holiday was introduced on 8th July 2020 and is set to expire on 30th June 2021 for properties up to £500,000 and 30th September 2021 for properties up to £250,000.
Stamp duty now needs to be paid within 14 days after completing on a property purchase. The 14 day period for submitting a stamp duty return has been effective from March 2019 and has been reduced from 30 days.
In reality the reduced time frame should not have a significant impact on individuals. This is because most SDLT returns will be submitted by a solicitor or conveyancer acting on behalf of their client.
When the stamp duty holiday ends on 31st March 2021, all stamp duty thresholds and rates will revert to those in place before to the stamp duty holiday.
From April 2021 the freehold residential stamp duty rates and thresholds are shown in the table below:
|less than £125k
|£125k to £250k
|£250k to £925k
|£925k to £1.5m
|rest over £1.5m
|* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £125k the SDLT rate will be 3% on full purchase price. The SDLT rates above apply to freehold residential purchases in England and Northern Ireland.