Stamp duty slashed on purchases up to £500,000 The government has raised the stamp duty threshold in England and Northern Ireland to £500,000 until 31 March 2021. Previously, stamp duty kicked in at £125,000 (or £300,000 for first-time buyers), meaning people moving home later this year can make significant savings. The change will also help people buying properties costing more than £500,000. As stamp duty is tiered, they will pay nothing on the first £500,000 and then normal rates on anything above that
The government says the temporary move will mean nine out of 10 people buying a home this year won’t need to pay any stamp duty at all
Stamp duty: the new rates until 31 March 2021 Portion of property price Percentage?:
Above £1.5m 12%
Ultimately, the more expensive the home you’re buying, the more money you’ll save under these new rules. The government predicts that the average stamp duty bill will fall by £4,500, but for properties priced at £500,000 the saving will be £15,000.
Does the stamp duty cut apply to buy-to-let?
If you’re buying an investment property or second home, you’ll still need to pay the 3% stamp duty surcharge, but this will be on the new temporary rates – so you could still make big savings.
Temporary rates for buy-to-let and second home purchases: £0-£500,000 3%
Above £1.5m 15%
Previously, if you bought an investment property for £250,000, you’d have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. Until 31 March 2021, you’ll only pay 3% stamp duty on the whole purchase price, meaning a bill of £7,500 and a saving of £2,500.