The stamp duty holiday has been extended until the end of September 2021, as part of The Chancellor’s March Budget announcement. This means buyers can still make a substantial tax saving, but you will need to act quickly in order to complete your purchase on time.

There are now two stamp duty deadlines – 30th June 2021 and 31st September 2021, so we’ve put together a simple explanation of what each one means, and how much you could save over the next few months.

What is Stamp Duty?

Officially known as Stamp Duty Land Tax (SDLT), this is a levy that most property buyers have to pay HMRC when purchasing an apartment or a house in the UK. The amount owed depends on the value of the property, and usually only homes worth up to £125,000 (£300,000 for first time buyers) are exempt.

What is the Stamp Duty Holiday?

In July 2020, Chancellor Rishi Sunak announced a temporary Stamp Duty holiday when the country was coming out of its first coronavirus lockdown, which meant the zero per cent rate was increased from £125,000 to £500,000 until 31st March 2021. On 3rd March this year, The Chancellor extended this deadline to the end of June, where it will then be tapered until the end of September for residential properties valued up to £250,000. The aim is to give a boost to the housing market and prevent thousands of sales from falling through in the midst of a global pandemic. The stamp duty thresholds will then return to normal from October.

The stamp duty rates until 30th June 2021 for residential properties:

The stamp duty rates until 30th June 2021 for residential properties:

Price Brackets Rate
£0-£500,000 0%
£500,001 – £925,000 5%
£925,001 – £1.5m 10%
£1.5m+ 12%
Price Brackets Rate
£0-£250,000 0%
£250,001 – £925,000 5%
£925,001 – £1.5m 10%
£1.5m+ 12%

The stamp duty rates between 1st July 2021 and 30th September 2021 for residential properties:

How much stamp duty can you save on some of our homes for sale between now and October?

Washington Street – £399,950
A stamp duty saving of almost £10,000 between now and October.

Stamp Duty Payable:

Until 30 June 2021: £0

1 July – 30 Sep 2021: £7,497

Oct onwards: £9,997

 

Little London Mews – £525,000

A stamp duty saving of up to £15,000 between now and October.

Stamp Duty Payable

Until 30 June 2021: £1,250

1 July – 30 Sep 2021: £13,750

Oct onwards: £16,25

 

Langstone Road – £1.3million

A stamp duty saving of up to £15,000 between now and October.

To arrange a physical or video tour of any of our homes for sale, or for any questions about how the stamp duty holiday will affect you, please contact the Hancock & Partners sales office on 01243 531155.