When you buy a home, you normally have to pay stamp duty tax on the purchase price. There are three different forms of land tax that apply in the UK and each has its own starting thresholds, rates and bands.
One common element of all the UK stamp duty tax is the lowest threshold has been temporarily increased for residential property deals completed up until midnight on 31 March 2021.
In England and Northern Ireland, there is zero land tax where the price paid for the property doesn’t exceed £500,000. However, when buying a second home, or acquiring through a company, an additional 3% land tax is payable on the entire purchase consideration.
In Scotland, no stamp duty tax is due on residential properties costing up to £250,000, but a 4% supplement applies to the entire purchase price where the property is acquired as a second home or by a company.
In Wales, the stamp duty tax for residential properties starts at £250,001. However, a lower starting threshold of £180,000 applies when buying a second home, and a 3% supplement applies to the entire purchase price.