Stamp Duty Changes Northern Ireland

Stamp duty can add £10,000s to a homebuyer’s costs, but temporary changes mean many WON’T have to pay it. Until April 2021, in England and Northern Ireland you won’t pay any stamp duty on a main residence up to £500,000, while in Scotland and Wales the threshold’s rising to £250,000. This guide’s got all you need to know about how stamp duty works and when you’ll need to pay it, and it also includes a free stamp duty calculator.

Stamp duty – what’s changed?

In response to the coronavirus pandemic, there have been some sweeping changes to stamp duty in England and Northern Ireland, and land and buildings transaction tax in Scotland, while similar changes will take effect in Wales from Monday 27 July. In a nutshell, the threshold at which you start paying stamp duty (or land and buildings transaction tax/land transaction tax) has increased significantly. In short:

  • In England and Northern Ireland, there is now no stamp duty on any primary residential property worth up to £500,000.
  • In Scotland, the threshold on a primary residence has increased to £250,000.
  • In Wales, the threshold on a primary residence will increase to £250,000 from 27 July.
  • In all four of the home nations, this temporary change will last until 31 March 2021.

If you’re in England or Northern Ireland

In England and Northern Ireland, since 8 July 2020 no stamp duty has been due on the first £500,000 of a property (provided it’s your main residence, it excludes additional properties).

Here are the stamp duty rates:

Stamp duty in England and Northern Ireland (until 31 March 2021)
PURCHASE PRICERATE ON MAIN RESIDENCE (1)RATE FOR ADDITIONAL PROPERTIES (1)
Up to £500,0000%3% (2)
£500,001 – £925,0005%8%
£925,001 – £1,500,00010%13%
£1,500,001 +12%15%
(1) Rate applies to that portion of the purchase price. (2) Properties up to £40,000 are exempt from stamp duty.

1. Let’s assume you’re buying a property for £450,000…

You pay nothing below £500,000.So this means you’ll pay no stamp duty at all.

2. Let’s assume you’re buying a property for £650,000…

You pay nothing below £500,000.
You pay 5% on between £500,000 and £925,000, which is £7,500 on a £650,000 property.
So in total, this means you’ll pay £7,500.

People buying an additional property (ie, in addition to any they already own) that costs more than £40,000 are subject to the higher stamp duty rate. So if you bought a second home worth £100,000, you would pay 3% stamp duty on the portion between £40,000 and £100,000 (see the table above).