The Chancellor of the Exchequer recently announced a mini holiday from stamp duty on residential properties. The holiday lasts from now until next March, and all categories of buyers will benefit including landlords, first time buyers, and buyers who have owned homes before. Let’s look at how this works and how much each group will save in stamp duty.
Stamp duty saving for Buy-to-let landlords
During the holiday period individuals or companies will pay a reduced stamp duty when purchasing residential properties. The surcharge rate on the first £500,000 of the price of property is fixed at 3%, a reduction from the normal rate. Above £500,000 the normal rate applies. The table below shows the stamp duty payable at the normal and at holiday rates. The maximum saving is £14,750, achieved for properties worth £500,000 and above.
| Property price | Normal rate | Holiday rate | Saving on Stamp Duty |
| £100,000 | £3,000 | £3,000 | £0 |
| £200,000 | £6,750 | £6,000 | £750 |
| £300,000 | £13,750 | £9,000 | £4,750 |
| £400,000 | £21,750 | £12,000 | £9,750 |
| £500,000 | £29,750 | £15,000 | £14,750 |
| £600,000 | £37,750 | £23,000 | £14,750 |
| £700,000 | £45,750 | £31,000 | £14,750 |
| £800,000 | £53,750 | £39,000 | £14,750 |
| £900,000 | £61,750 | £47,000 | £14,750 |
| £1,000,000 | £73,500 | £58,750 | £14,750 |
Stamp duty saving for First time buyers
For individuals, the stamp duty free portion of the property price is extended from £300,000 to £500,000. Above £500,000 stamp duty is applied at the normal rate. The table below shows the stamp duty payable at the normal and at holiday rates.
| Property price | Normal rate | Holiday rate | Saving on Stamp Duty |
| £100,000 | £0 | £0 | £0 |
| £200,000 | £0 | £0 | £0 |
| £300,000 | £0 | £0 | £0 |
| £400,000 | £5,000 | £0 | £5,000 |
| £500,000 | £10,000 | £0 | £10,000 |
| £600,000 | £15,000 | £5,000 | £10,000 |
| £700,000 | £20,000 | £10,000 | £10,000 |
| £800,000 | £25,000 | £15,000 | £10,000 |
| £900,000 | £30,000 | £20,000 | £10,000 |
| £1,000,000 | £37,500 | £27,500 | £10,000 |
Stamp duty saving for Main residents who previously bought a home
Individuals who have bought a home previously but are still buying the property as their main residents also pay reduced stamp duty during the holiday period. With a maximum saving of £15,000, this group benefits the most from stamp duty saving amongst the three categories of buyers. The stamp duty free portion of the property price is extended from £125,000 to £500,000. Above £500,000 stamp duty is applied at the normal rate. The table below shows the stamp duty payable at the normal and at holiday rates.
| Property price | Normal rate | Holiday rate | Saving on Stamp Duty |
| £100,000 | £0 | £0 | £0 |
| £200,000 | £1,500 | £0 | £1,500 |
| £300,000 | £5,000 | £0 | £5,000 |
| £400,000 | £10,000 | £0 | £10,000 |
| £500,000 | £15,000 | £0 | £15,000 |
| £600,000 | £20,000 | £5,000 | £15,000 |
| £700,000 | £25,000 | £10,000 | £15,000 |
| £800,000 | £30,000 | £15,000 | £15,000 |
| £900,000 | £35,000 | £20,000 | £15,000 |
| £1,000,000 | £42,500 | £27,500 | £15,000 |