Earlier this month, the Stamp Duty Land Tax (SDLT) holiday began to phase out. From 1 July 2021, the SDLT NIL rate was lowered from £500,000 to £250,000 on residential homes.
The Stamp Duty Land Tax holiday will now only apply to residential homes costing £250,000 or less. The government introduced the holiday in June 2020, due to the effects the coronavirus pandemic had on the economy and the housing market.
The SDLT holiday allowed buyers to purchase homes up to the value of £500,000 with no SDLT liability. However, in the March Budget, Chancellor Rishi Sunak revealed the holiday would begin to phase out from 1 July 2021 until 30 September 2021, where the threshold will revert to its normal rate of £125,000 on 1 October 2021.
Stamp Duty rates from 1 July until 30 September 2021 are now as follows:
£0 – £250,000 = 0%
£250,001 – 925,000 = 5%
£295,001 – £1,500,000 = 10%
£1,500,000+ = 12%
First-time buyers will still be able to purchase property up to the value of £300,000 without paying any stamp duty on the property.
However, landlords and second-home buyers will still have to pay the 3% surcharge on the purchase of subsequent properties.
HMRC provides a SDLT calculator to help work out the amount of stamp duty payable. This can be found on the government website.
For more information on SDLT rates, feel free to get in touch with us via our contact page or give us a call on 01704 891676.
* Stamp duty rates referred to in this article are applicable for property purchases in England and Northern Ireland only.