Stamp Duty Changes
June 22, 2021
Stamp Duty Changes: WHAT YOU NEED TO KNOW
You will no doubt be aware that the property market has benefitted from a Stamp Duty holiday which was brought in last year to encourage a resurgence in the property market. The phased stamp duty changes begin at the end of this month. Currently, if you are buying your MAIN property up to 30 June 2021 you will not incur stamp duty on purchases of up to £500,000. Anything over this amount the Stamp Duty rate will apply. This applies whether you are a first-time buyer or previously owned a property. It is certainly a tense time for Conveyancers, vendors and buyers all hoping for their property sales to complete before this deadline.
After this date, from 1 July 2021 to 30th September 2021 you will NOT have to pay stamp duty on residential properties costing UP TO £250,000. However there will be a 5% charge on the value from purchasers from £250,001 – £925,000. So for example, a property sale of £300,000 will then incur a Stamp Duty charge of £2,500. This applies to those purchasing their MAIN property, having previously owned a house before.
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £250,000 | zero |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Source: www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
If you are a FIRST TIME BUYER, from 1 July 2021 you will NOT have to pay stamp duty on properties costing up to £300,000, and at a discounted rate for £300,001 to £500,000.
From 1 October 2021, the last phase will begin, with all properties over £125,000 incurring Stamp Duty for residential properties (unless you are a first time buyer).
For illustration examples or to calculate how much you might incur when you sell your home, visit www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
For more information and advice contact any of our branches and we’ll be happy to help. Find your nearest branch at www.richardkendall.co.uk/contact/
