Stamp Duty Changes Explained
9th July 2020
From Wednesday 8th July 2020 until 31st March 2021, if you complete on the purchase of a residential property you only start paying Stamp Duty Land Tax (SDLT) on the amount that you pay for a property above £500,000.
During this time, the special rules for first time buyers are replaced by the new reduced rates.
You can use the table below to work out the SDLT due:
|
Property or lease premium or transfer value
|
SDLT rate
|
|
Up to £500,000
|
Zero
|
|
Next £425,000 (£500,001 to £925,000)
|
5%
|
|
Next £575,000 (£925,001 to £1.5M)
|
10%
|
|
Remaining amount (above £1.5M)
|
12
|
EXAMPLES
Rectory Lane, Ashtead - £535,000
Previous SDLT: £16,750
Current SDLT: £1,750
Keswick Road, Fetcham - £1,200,000
Previous SDLT: £63,750
Current SDLT: £48,750
Levett Road, Leatherhead – £265,000
Previous SDLT: £3,250
Current SDLT: £0
Ruden Way, Epsom - £1,100,000
Previous SDLT: £ 53,750
Current SDLT: £ 38,750
Additional property purchases will also benefit from this reduction; however, they will still pay the additional 3%.
The following rates apply for additional properties:
|
Property or lease premium or transfer value
|
SDLT rate
|
|
Up to £500,000
|
3%
|
|
Next £425,000 (£500,001 to £925,000)
|
8%
|
|
Next £575,000 (£925,001 to £1.5M)
|
13%
|
|
Remaining amount (above £1.5M)
|
15%
|
Please see the government guidance for further details :
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
If you are considering selling your property in Ashtead, Leatherhead, Fetcham, Epsom, Bookham or the surrounding areas, call V&H Homes on 01372 221 678 or click on the below link to arrange a valuation.
