Second homes
When it comes to purchasing a second home, the higher additional rates remain with a 3% higher rate on top of the new revised standards. So, if you are purchasing a holiday home up to the threshold value of £500,000, you will pay 3% SDLT. Those buying a second home over the threshold with pay 8% on the portion from £500,001 to £925,000, 13% on the portion from £925,001 to £1.5 million, and 15% on the remaining portion over £1.5 million.
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Leasehold sales and transfers
On new leasehold sales and transfers, the nil rate band which applies to the net present value of any rents payable for residential property is also increased to £500,000 until the end of March next year. A SDLT of 1% will be charged on any net present value of any rent over the threshold.
Residential properties
Companies purchasing residential property under the £500,000 threshold will also be exempt from the paying SDLT. In additional companies that buy residential property of any value that meet the relief criteria from the corporate 15% SDLT will also benefit from the change made.
From 1 April 2021, the SDLT holiday will come to an end and the SDLT regulations will revert to what they were before these temporary changes were announced.
As there are many different types of stamp duty tax, we have created a stamp duty calculator to help you work out how much you will have to pay for the property you buy. Simply fill out the purchase price and see what your tax will be.
Land Transaction Tax in Wales
Currently in Wales, no Land Transaction Tax (LTT) is payable on a property up to £180,000. This increases to 3.5% up to £250,000, 5% up to £400,000, and 7.5% up to £750,000.
A 3% surcharge applies to all transactions involving the purchase of an additional property, including buy-to-let investments and second homes. The 3% surcharge applies to the full purchase price above an initial threshold of £40,000.
Specific first-time buyer relief is not currently available under the LTT system.
When you buy a residential property (freehold or leasehold) the following rates will apply to the portion of the price you pay in each band.
If you already own at least one residential property, you may need to pay the higher residential rates when you purchase a residential property.
Land and Buildings Transaction Tax in Scotland
Land and Buildings Transaction Tax (LBTT) operates slightly differently to SDLT in England and Northern Ireland or LTT in Wales, as it requires buyers to pay tax on amounts between bands, as opposed to the full purchase price of a property.
The first £145,000 will be exempt from tax when purchasing your primary property. Between £145,001 and £250,000, you will pay 2% LBTT, and then 5% on the amount between £250,001 and £325,000. Between £325,001 and £750,000 the tax will be at 10% with any amount thereafter taxed at 12%.
Since 30 June 2018, first-time buyers in Scotland have benefited from a relief on LBTT. This raises the zero-tax threshold for first-time buyers from £145,000 to £175,000.
To find out how much you will need to pay for your new home, fill out our Stamp Duty Calculator form, selecting where you will be buying the property from the dropdown of options.
