Higher residential SDLT threshold extended

Higher residential SDLT threshold extended

Stamp duty land tax (SDLT) is payable when you buy a property in England or Northern Ireland. Last year, the SDLT residential threshold was temporarily increased to £500,000 with effect from 8 July 2020. The threshold was due to revert to its normal level of £125,000 from 1 April 2021, but this has now been delayed.

The residential threshold applying in Scotland for Land and Buildings Transaction Tax (LBTT) was also increased for a temporary period, but reverted to its normal level of £145,000 from 1 April 2021. In Wales, the residential Land Transaction Tax (LTT) threshold was increased to £250,000 from 27 July 2020. It will remain at this level until 30 June 2021, reverting to its usual level of £180,000 from 1 July 2021.

SDLT residential threshold – 8 July 2020 to 30 June 2021

The SDLT residential threshold will remain at £500,000 until 30 June 2021. The rates applying until that date are set out below.

Property valueMain homeAdditional properties
Up to £500,000Zero3%
Next £425,000 (£500,001 to £925,000)5%8%
Next £575,000 (£925,001 to £1.5 million)10%13%
The remaining amount (over £1.5 million)12%15%

SDLT residential threshold – 1 July 2020 to 30 September 2021

From 1 July 2021 until 30 September 2021, a lower temporary residential SDLT threshold of £250,000 will apply. The first-time buyer threshold (which applies where the consideration does not exceed £500,000) reverts to £300,000 from 1 July 2021.

The SDLT rates applying for this period are set out below.

Property valueMain homeAdditional properties
Up to £250,000Zero3%
Next £675,000 (£250,001 to £925,000)5%8%
Next £575,000 (£925,001 to £1.5 million)10%13%
The remaining amount (over £1.5 million)12%15%

SDLT residential threshold from 1 October 2021

The SDLT residential threshold returns to £125,000 from 1 October 2021. The residential rates applying from that date are set out below.

Property valueMain homeAdditional properties
Up to £125,000Zero3%
The next £125,000 (£125,001 to £250,000)2%5%
Next £675,000 (£500,001 to £925,000)5%8%
Next £575,000 (£925,001 to £1.5 million)10%13%
The remaining amount (over £1.5 million)12%15%

Contact us

If you are looking to buy a property this year, speak to us to find out what you can save by completing the sale by 30 June 2021 or, if this is not possible, by 30 September 2021. Remember, if you are looking to buy an investment property, you will also benefit from the higher thresholds as the 3% supplement is added to the residential rates, as reduced.