01/07/2021
Stamp Duty changes
Yesterday was the last day of the main stamp duty holiday, with the tax break becoming less generous in England from today. However, the holiday has not ended completely, here is a breakdown of how it works from here, if you'll need to pay it, and what happens when it finally ends…
Up until yesterday, no stamp duty was due on the first £500,000 of any primary residential property. From today until 30th September, no stamp duty will be due on the first £250,000 of any primary residential property (this is higher if you're a first-time buyer).
The stamp duty holiday ends on 30th September, and from there the normal stamp duty rates apply.
You need to have completed your property purchase by 30th September to benefit from the stamp duty holiday. If you exchange on or before 30th September, but complete after 30th September, then you'll have missed the deadline and will need to pay the normal rate of stamp duty.
This is what the stamp duty rates will be from 1st July until the end of September:
PURCHASE PRICE: Up to £250,000 (up to £300,000 for first-time buyers)
RATE ON MAIN RESIDENCE: 0%
RATE FOR ADDITIONAL PROPERTIES: 3%
PURCHASE PRICE: £250,001 – £925,000
RATE ON MAIN RESIDENCE: 5%
RATE FOR ADDITIONAL PROPERTIES: 8%
PURCHASE PRICE: £925,001 – £1,500,000
RATE ON MAIN RESIDENCE: 10%
RATE FOR ADDITIONAL PROPERTIES: 13%
PURCHASE PRICE: £1,500,001 +
RATE ON MAIN RESIDENCE: 12%
RATE FOR ADDITIONAL PROPERTIES: 15%
(1) Rate applies to that portion of the purchase price. (2) Additional properties bought for less than £40,000 will be charged the main residence rate of stamp duty. (3) The £300,000 first-time buyer stamp duty threshold does not apply if the property you are buying costs more than £500,000 – if it does, you'll pay the normal rate of stamp duty.
How much stamp duty does a first-time buyer pay?
Until today, first-time buyers in England didn’t pay stamp duty on the first £500,000 of a main residential property. From tomorrow onward, no stamp duty will be due for first-time buyers on the first £300,000 of a main residential property.
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