What is Land Transaction Tax and Stamp Duty Land Taxation?
UK Stamp Duty was first introduced in 1694 to help raise money for the war with France. It was a successful appropriation and despite being a temporary solution it stayed well after the wartime evolving into a permanent fixture of UK taxation
In 2003 the old system of stamping an official document to indicate that tax had been paid was replaced with electronical records and the transaction was renamed SDLT (Stamp Duty Land Taxation). In Wales the transaction was renamed LTT (Land Transaction Tax). They are both similar systems but carry different tax rate thresholds.
The rates can change depending on your circumstance, for example you are a first time buyer or you are buying a second home/holiday home, whether the property is freehold or leasehold.
Tax Holiday - The Stamp Duty and Land Transaction Tax holiday came into effect in July 2020 as part of the response to the Covid-19 pandemic and to help the housing market. The tax threshold for anyone buying a home has increased to £500k in England and £250k in Wales. The tax holiday is due to end 31st March 2021.