UK Stamp Duty on Properties

 Changes to the Tax

The Stamp Duty Land Tax (SDLT) in England and Northern Ireland will change from 1st April 2021. This pages illustrates the current calculation regime for properties that are sold and that might be subject to the tax. It also shows the new system from 1st April 2021 and illustrates the possible differences between the two systems.

The following screenshot illustrates the main points as I show the sale of a property for £625,000 as if the sale were made before and then after 1st April 2021. I have set the example so that the price is the same before and after but the next screenshot shows different property prices before and after.

In any case, assuming the same price, £625,000 gives rise to a net tax burden of 1.0% of sale price before 1st April 2021 and a net tax burden of 3.40% following the 1st April 2021 change.

Notice also the figure in cells B10 and B19: I have set them implausibly large so that there should be no property transaction beyond the calculation model! Notice the 0.0% and 4.08% net tax burdens in this second screenshot.

• I could have set up a lookup function for this example but did not
• I could have set up an IFS() function for this example but did not
• Instead I set up a tabular solution that you can take a look at by downloading my working file from here: my SDLT file

Duncan Williamson

8th January 2021