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    UK Stamp Duty Extended to September
    Non-First-Time-Buyers can Save Up to £15,000 on Stamp Duty

    Chancellor Rishi Sunak Presents Annual Budget

    What is SDLT- stamp duty land tax

    Investors and buyers must pay Stamp Duty Land Tax (SDLT) when they purchase a property or land over a certain price in the UK. SDLT must be paid within 30 days of a transaction. The SDLT threshold is £125,000 for both freehold and leasehold residential properties in the UK, including Ireland and Scotland, even if a mortgage needs to be arranged. In Scotland, if a buyer purchases a plot of land, then the buyer will need to pay Land and Building Transaction Tax.

    What is Stamp Duty Holiday

    The stamp duty holiday, introduced in July 2020, was delivered following months of lockdown from the pandemic, which essentially led to a housing market freeze. The stamp duty threshold was increased from £125,000 to £500,000.  As stamp duty is only paid out upon completion, the property must be completed before the exemption period. UK Chancellor Rishi Sunak recently announced that the stamp duty holiday will be extended until the end of July 2021. Investors purchasing a property from £125,000 to £500,000 will be exempted from stamp duty. From July to August 2020, after the stamp duty holiday was introduced, transactions in the UK increased by about 4.6%.

    Advantages of investing in the UK:

    • UK’s stamp duty holiday was extended to June 30th for both local and overseas investors. Investors can save up to £15,000 on transaction costs.
    • UK’s Help to Buy scheme will launch a 5% deposit for local buyers from the UK to properties up to £600,000.
    • Low-interest rate is advantageous for overseas investors and buyers.


    Costs breakdown:

    UK’s Extended Stamp Duty Holiday
    Stamp Duty for First-Time-Buyers

    Property Price

    Original Before June 30th July 1st – Sept 30th From Oct 1st

    £0  – £125,000

    0% 0% 0%


    £125,001  – £250,000

    2% 0% 0%


    £250,001  – £500,000

    5% 0% 5%


    £500,001  – £925,000

    5% 5% 5%


    £925,001  – £1,500,000

    10% 10% 12%


    £1,500,000 & above 12% 12% 12%


    Taxation for foreign buyers

    2 % (Beginning April 1st)


    UK’s Extended Stamp Duty Holiday
    Stamp Duty for Non-First-Time-Buyers

    Property Price

    Original Before June 30th July 1st – Sept 30th

    From Oct 1st

    £0  – £125,000

    3% 3% 3%


    £125,001  – £250,000 5% 3% 3%


    £250,001  – £500,000

    8% 3% 8%


    £500,001  – £925,000

    8% 8% 8%


    £925,001  – £1,500,000

    13% 13% 13%


    £1,500,000 & above

    15% 15% 15%


    Taxation for foreign buyers

    2 % (Beginning April 1st)

    Taxation for non-first-time buyers



    If you wish to know how much stamp duty you need to pay, please visit here for a calculator on the official UK government webpage.

    How much stamp duty do you need to pay when buying in the UK?

    • The nil rate band of £500,000 will be in place until June 30th (handover must be before this date). First-time buyers purchasing a property below £500,000 will pay no stamp duty. Non-first-time buyers can save up to £15,000.
    • If you purchase a residential property between 1 July 2021 to 30 September 2021, you only start to pay SDLT on the amount that you pay for the property above £250,000. Buyers can save £2500.
    • On the 1st October, the temporary rates of SDLT will revert back to the standard rates.

    UK Stamp Duty Holiday(Source: The Times)


    Previously affected by the stamp duty holiday, buyer demand surged in a short period of time. Due to the huge transaction volume and the slow processing speed of mortgage loans and legal documents, some buyers could miss the stamp duty holiday deadline. If a buyer misses the stamp duty holiday deadline, he/she may be unable to afford the full price of the property, which will break the transaction chain. Buyers must take this into consideration in order to minimize loss.

    Although the stamp duty holiday has been extended, an additional 2% stamp duty surcharge has been introduced to foreign buyers since April 1st, 2021.

    Is Stamp Duty Holiday only applicable to second homes and buy-to-let

    The stamp duty holiday applies to the first £500,000 of any residential property. Therefore, buy-to-let investors or investors who are purchasing a second property can also benefit from the exemption, although non-first-time buyers will need to pay additional stamp duty. Beginning from April 2016, existing buyers purchasing a property in England or Northern Scotland must pay an additional 3% surcharge (and 4% in Wales and Scotland).

    Source:BBC , The Telegraph, The Times, GOV.UK

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