Stamp duty holiday changes

From 1st July there will be a phased return to previous stamp duty rates.

The previous £500,000 nil-rate band lowers to £250,000 as of 1 July, until the end of September. However it's estimated nearly half of buyers are still likely to benefit from 0% taxation on their main residence. 

From 1st October, the nil-rate band will revert to £125,000.

You can use the government's Stamp Duty Land Tax (SDLT) calculator to find out how much you would pay.

• Over the past year, 47% of all homes in England sold for below £250,000. Excluding London, the proportion increases to 52%. In Wales over half of all buyers will still pay 0% tax.
• In northern regions, where property price growth is currently strongest, over 70% of sales fall below the £250,000 threshold; in London just one in 20. First-time buyers in England will still benefit from tax relief on sales up to £300,000.
• Although many expected the housing market to be quieter during the summer months as restrictions ease, demand across the housing market remains high. Source: Dataloft, Land Registry, based on sales recorded in the year to the end of April 2021.

Stamp duty timeline

8th July 2020

• Temporary cut to Stamp Duty Land Tax (SDLT) in England and Northern Ireland announced.
• Nil-band threshold of £125,000, was raised to £500,000, until 31 March 2021.
• Landlords and second-home buyers were also able to make use of the holiday, but still had to pay the extra 3% of stamp duty on top.

3rd March 2021

• Due to the large numbers of property transactions still in the system, the stamp duty holiday was extended until 30th June 2021
• Government announced the nil rate band would be lowered to £250,000 from July, with a return to the normal level of £125,000 from 1 October 2021.

30th June 2021

• Maximum stamp duty holiday savings end today, though some buyers still to benefit depending on purchase price.

1st July 2021 

• Commencement of the ‘phased’ return to previous stamp duty rates, with no stamp duty payable for the first £250,000 of the of the purchase price until 30th September.

Rates as of 1 July 2021:

£0-£250,000 = 0%

£250,001-£925,000 = 5%

£925,001-£1,500,000 = 10%

£1,500,000+ = 12%

• From July, first-time buyers will not pay any stamp duty on property purchases up to £300,000.

30th September 2021

• The phased part of the stamp duty holiday is due to end.  Buyers must complete a property purchase by 30th September to benefit from any savings.

1st October 2021

• Stamp duty to revert to the original pre- 8^th July 2020 rates:

£0-£125,000 = 0%

£125,001-£250,000 = 2%

£250,001-£925,000 = 5%

£925,000-£1,500,000 = 10%

£1,500,000+ = 12%

*Information correct at time of publishing and may be subject to change

 

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