Stamp Duty Holiday Ends – What Does This Mean For Me?

27th October 2021

The government announced that the stamp duty rates are to return to normal from 1st October 2021.  Stamp duty and land tax is the tax you pay when you purchase land or property.  The amount due will depend on the price of your property and the reason for buying it. 
 
Since July 2020 there has been a stamp duty land tax holiday which has seen temporary changes and a Nil rate threshold up to £500,000 to 30th June 2021, and up to £250,000 to the 30th September 2021.  The return to normal levels mean that for residential property purchasers over £125,000 then stamp duty land tax will be due.
 
From October 2021 the following rates will apply on residential property transactions:
 
Up to £125,000               0%
£125,000 – £250,000      2%
£250,000 – £925,000      5%
£925,000 – £1,500,000  10%
Above £1,500,000         12%
 
Depending on your circumstances and specific details of the transaction, additional rates may apply.  These may include an additional 3% rate for second homes or additional properties.  For non UK residents, surcharges will also be applied, and different rates will be applicable for corporate bodies.
 
To calculate your stamp duty land tax rate visit the HMRC Stamp Duty Calculator.
 
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

Authored by Emma Hodkinson

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