When has the stamp duty holiday been extended to?

The stamp duty holiday has officially come to an end and is now being phased out with the original rates of stamp duty returning from 1st October 2021.

Current Stamp Duty Rates

Originally the stamp duty holiday was meant to end on 31 March 2021, however the Chancellor decided to extend it in his Budget.

The following dates show the current rates

March– 30 June 2021: no tax to pay on the first £500,000 of property purchases in England and Northern Island

1 July – 30 September 2021: no stamp duty on a residential property bought for up to £250,000

1 October 2021 onwards: nil rate to the standard amount of £125,000

What is the stamp duty holiday?

Stamp duty is the money that is paid to the tax man when buying land or property in the UK worth over a certain value. In July 2020 Rishi Sunak introduced a tax break on stamp duty as the country came out of the first lockdown. This was to boost the housing market by offering a stamp duty break of the first £500,000 on the purchase price of a property. The previous stamp duty land tax threshold was £125,000, with first time buyers entitled to £300,000. Above these values there was a tax ranging from 2% to 12%. Therefore in relation to this tax break there has been a significant rise in house prices as people rush to buy houses before the stamp duty cut off date.

How much stamp duty will I pay in July 2021?

Between 1 July 2020 and 30 September 2021 there is a transitional period where you will not have to pay tax on the first £250,00 of a new property.

Stamp Duty Rates After September 2021

As of the 1st October 2021 you will have to pay stamp duty at the previous levels before the holiday was introduced.

-          Up to £125,000 there will be no stamp duty tax applied

-          The portion between £125,001 and £250,000 – 2% is applied

-          £250,001 and £925,00 – 5% is applied

-          £925,001 and £1.5m – 10% is applied

-          £1.5m and above – 12% is applied

 What is the stamp duty rate when buying a second home?

As of the 1st October 2021 you will have to pay the normal rates again plus the additional 3% rate:

-          Up to £125,000 – 3%

-          The portion between £125,001 and £250,000 – 5% (2% + 3%)

-          £250,001 and £925,000 – 8% ( 5% + 3%)

-          £925,001 and £1.5m – 13% ( 10%+ 3%)

-          £1.5m and above – 15 % ( 12% + 3%)

When do you pay stamp duty on a house?

Stamp duty needs to be paid 14 days after completion. The Stamp Duty Land Tax Return is normally filed by your solicitor, conveyancer or agent.