Stamp Duty Update 2020

Following the Chancellor’s announcement on 08 July 2020 there will be a temporary increase to Stamp Duty nil rate bands for residential property purchases up to £500,000.

This applies to transactions that are completed or substantially performed between 8 July 2020 and 31 March 2021 inclusive.

Stamp Duty is charged in increasing portions of the property price above £125,000

The Chancellor has temporarily increased the ‘zero-rated band’ from £125,000 to £500,000, anything in excess of this will be charged in accordance with the rates in the table below.

These temporary rates do not apply where the transaction was substantially performed before 8 July 2020 and for additional dwellings, the surcharge of 3% still remains although this applies on the revised bands.

The revised rates are as follows:

The additional dwelling percentage is payable where a person purchases a property and this is not the only dwelling that they own.

A claim for repayment of the additional percentage can be made where the new property replaces the person’s main home and the previous main home is sold within three years of buying the new home.

A revision has been made to the legislation and if your main residence has been sold outside of this three year period you may be able to extend this if your sale was delayed due to the circumstances surrounding COVID-19 – please speak to us for further details regarding this.

Find out more about our residential conveyancing services here.

This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.  Fraser Dawbarns LLP are always happy to provide such advice.