Stamp Duty - are there still savings to be made?

July 13, 2021Categories: Selling, Buying
Stamp Duty - are there still savings to be made?

Last July it was announced that no stamp duty was payable on residential properties under the value of £500,000 and yet, whilst this stamp duty holiday ended on 30 June 2021, there may still be opportunities available to buyers, as Your Move explains.

What stamp duty savings will apply during the rest of 2021?

From 1 July 2021 – until 30 September you’ll still not have to pay stamp duty on the first £250,000 paid for a property; although

From 1 July 2021 – there will be a 5% stamp duty charge on the amount between £250,001 and £500,000; and

From 1 October – the stamp duty will then begin to apply for all properties valued £125,000 and above.

What rates of stamp duty are payable?

The following rates will apply from 1st July 2021 to 30th September 2021

  • £0 to 125,000 = 0%
  • £125,001 to 250,000 = 0%
  • £250,001 to 500,000 = 5%
  • £500,001 to 925,000 = 5%
  • £925,001 to 1,500,000 = 10%
  • £1,500,001 plus = 12%

The following rates will apply from 1 October 2021 (reverting back to pre-stamp duty holiday levels)

  • £0 to 125,000 = 0%
  • £125,001 to 250,000 = 2%
  • £250,001 to 500,000 = 5%
  • £500,001 to 925,000 = 5%
  • £925,001 to 1,500,000 = 10%
  • £1,500,001 plus = 12%

Need an example?           

If you buy a property worth £300,000 before 30 September 2021 you’ll pay £2,500 i.e.                                                                                                                             

  • For the first £125,000 = £00.00 (due to 0% rate)
  • For the amount between £125,001 and £250,000 = £00.00 (due to 0% rate)
  • For the amount between £250,001 and £300,000 = £2,500 (due to 5% rate applied to difference between these amounts)

TOTAL: £2,500

If you were buying a property worth £300,000 from 1 October 2021 you’ll pay £5,000 i.e.

  • For the first £125,000 = £00.00 (due to 0% rate)
  • For the amount between £125,001 and £250,000 = £2,500 (due to 2% rate applied to difference between these amounts)   
  • For the amount between £250,001 and £300,000 = £2,500 (due to 5% rate applied to difference between these amounts)                                                               

TOTAL: £5,000

Is it different in Scotland, Wales and Northern Ireland?

Northern Ireland follows the same SDLT regime as in England but different taxes apply in Scotland, where Land and Buildings Transaction Tax is paid and in Wales, buyers will pay Land Transaction Tax.

Could I still take advantage of the stamp duty holiday?

Possibly, if you are quick and consider the time it can take to move house but the sooner you start, the better and definitely why now might be the time to put your house on the market and to perhaps make the first move.

If you’d like help in buying, or selling, simply contact one of our branches for help or to find out how much stamp duty might apply for your purchase, use our Stamp Duty Calculator.