Chancellor of the Exchequer Richi Sunak has today announced a major temporary overhaul of stamp duty in England and Northern Ireland.
Changes take effect from 8th July 2020 and will cease 31st March 2021
The New Stamp Duty Rates And Bands
The nil rate band for stamp duty will be increased from £125,000 to £500,000. This is across the board for residential purchases. Therefore first time buyers and home movers purchasing for £500,000 or below will benefit from a nil rate of stamp duty.
For those purchasing at £500,001 and above, the nil rate still applies and the stamp duty tiers then are applied as normal. This effectively knocks at least £15,000 off the stamp duty bill for every transaction above £500,001.
For those purchasing a second property where the additional 3% stamp duty takes effect. The £500,000 nil rate band will still apply as it did with the £125,000 nil rate. Therefore a flat rate of 3% will be applicable to transactions up to £500,000. For transactions above £500,001 the nil rate still applies and the stamp duty tiers then are applied as normal With the additional 3% added.
This is a huge boost to those looking for a higher loan to value mortgage as money which had been set aside to pay stamp duty can now be used towards the deposit.
Purchasing a second home or buy to let could also now be more accessible as long as the purchase price is under £500,000. For example the stamp duty bill on a £500,000 second home would yesterday have been £30,000. This is now £15,000.
The stamp duty additional charge has however been increased for transactions above £500,000. This is now set at 8% from £500,001 to £925,000, 13% from £925,001 to £1,500,000 and 15% above £1,500,001.
Stamp Duty Land Tax Property Value Bands and Rates For First Property Buyers
| Property or lease premium or transfer value | SDLT rate | |
| Up to £500,000 | Zero | |
| The next £425,000 (the portion from £500,001 to £925,000) | 5% | |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% | |
| The remaining amount (the portion above £1.5 million) | 12% |
Stamp Duty Land Tax Property Value Bands and Rates For Second Property Buyers
| Property or lease premium or transfer value | SDLT rate | |
| Up to £500,000 | 3% | |
| The next £425,000 (the portion from £500,001 to £925,000) | 8% | |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 13% | |
| The remaining amount (the portion above £1.5 million) | 15% |
Stamp Duty Land Tax Guide For First Property Buyers
| Property or lease premium or transfer value | SDLT Amount | |
| Up to £500,000 | £0 | |
| £600,000 | £5,000 | |
| £700,000 | £10,000 | |
| £800,000 | £15,000 | |
| £900,000 | £20,000 | |
| £1,000,000 | £28,750 | |
| £1,100,000 | £38,750 | |
| £1,200,000 | £48,750 | |
| £1,300,000 | £58,750 | |
| £1,400,000 | £68,750 | |
| £1,500,000 | £78,750 | |
| £1,600,000 | £90,750 | |
| £1,700,000 | £102,750 | |
| £1,800,000 | £114,750 | |
| £1,900,000 | £126,750 | |
| £2,000,000 | £138,750 |
"I would not hesitate to recommend Fox Davidson to family and friends. I am a first time buyer and therefore the house buying process was a little daunting to start with but I was kept fully up to date throughout the whole process to the point where I would receive an update email at least twice a week."
Miss R Power , Bristol"Having been let down by another mortgage broker (who seemed to only want to assist with a mortgage if we took other products too) I stumbled across Fox Davidson. As I am based half in London and half in Bristol, they seemed the perfect fit. Having connected with them and receiving prompt, relevant and helpful advice at the outset of our property search, I had no hesitation in coming back for the mortgage itself."
K Gibson, London"After using Fox Davidson for my first buy to let purchase I didn’t hesitate to get in touch again when the time came to buy a second property. Being an expat living and working in Thailand I had found through my own research that the options available to me would be limited, however I needn’t have worried. Fox Davidson found me a mortgage that suited my circumstances perfectly. They have helped to make what could have been a complicated process very simple and stress free."
Mr Christopher Hoare , Thailand
Contact Us
Fox Davidson provide tailored financial solutions for clients. Our minimum loan size is £250,000.
