Advice on Stamp Duty Land Tax in Northern Ireland
Stamp Duty Land Tax (SDLT) is a tax that anyone purchasing a property over a certain price must pay. The amount of tax that you pay will depend on the price of the property that you are purchasing.
Earlier this year, a temporary stamp duty holiday was announced on the first £500,000 of all property sales in Northern Ireland and England.
How is stamp duty calculated?
Residential rates on purchases from 8th July 2020 to 31st March 2021
If you buy a residential property between the 8th July 2020 and 31st March 2021, you will only begin to pay stamp duty on the amount that you pay for the property above £500,000.
Therefore, if you purchase a property between the above dates and this property is under £500,000, you will not have to pay this stamp duty.
The usual stamp duty rates have been replaced by those in the table below:
Tax Band | Normal Rate |
Up to £500,000 | 0% |
The next £425,000 (the portion from £500,001 to £925,000) | 5% |
The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
The remaining amount (the portion above £1.5 million) | 12% |
Higher rates for additional properties
The 3% higher rate for purchases of additional properties still applies on top of the temporary rates (shown above) until 31st March 2021.
Tax Band | Additional Property |
Up to £500,000 | 3% |
The next £425,000 (the portion from £500,001 to £925,000) | 8% |
The next £575,000 (the portion from £925,001 to £1.5 million) | 13% |
The remaining amount (the portion above £1.5 million) | 15% |
New leasehold sales and transfers
The nil rate band which applies to the ‘net present value’ of rents payable for residential property has also increased to £500,00 until 31st March 2021.
The below rates will apply:
Net Present Value of any Rent | Rate |
Up to £500,000 | 0% |
Over £500,000 | 1% |
Right now, there are thousands of properties for sale under £500,000 on Propertynews.com.
For more advice on buying a property in Northern Ireland click here.
For more information and for the latest news on stamp duty, please visit gov.uk