What Changes When the Stamp Duty Holiday Ends?

As of today (30 September 2021), the stamp duty holiday in England and Northern Ireland will come to an end. Hundreds of thousands of buyers have taken full advantage of these savings, which have been on offer since the tax break was introduced in July 2020.

The stamp duty tax savings have been tapering off since the end of June this year, with buyers paying no stamp duty on homes that were priced at or below £250,000 since 1st July. But, from the 1st October, the stamp duty tac rates will return to normal.

If you are buying a property, you can work out how much you will pay by using various online calculators. Why not try it for yourself by clicking here.

So, what are the stamp duty rates from 1st October?

If you are buying a main home, you will not pay any stamp duty on the portion of a property priced at or below £125,000. Spend up to £250,000, and you will receive the first £125,000 tax free, but will pay 2% tax on the portion above that.

Anything you spend between £250,001 and £925,000 will incur a 5% tax, rising to 10% for properties priced between £925,001 to £1.5 million. If you spend above £1.5 million, you will pay 12% in stamp duty tax. See a table below which breaks the stamp duty land tax rates down:

Stamp Duty Land Tax Rates from 1st October 2021SDLT Rate
Up to £125,0000
The next £125,000 (the portion from £125,001 to £250,000)2%
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%

For example, if you pay £300,000 on a property…

If you were to spend £300,000 on a property, your stamp duty will be calculated like this from 1st October 2021:

0% on the first £125,000 = £0

2% on the next £125,000 = £2,500

5% on the final £50,000 = £2,500

Stamp duty payable = £5,000

Tax rates will be higher for those buying a second home. You can find out more by using online stamp duty calculators. Click here to use Rightmove’s online calculator.

Do first-time buyers have to pay stamp duty tax?

If you are a first-time buyer in England or Northern Ireland, you will not pay tax on homes priced at or below £300,000. However, you will pay 5% on a property, or the portion of a property, priced between £300,001 and £500,000.

However, if the first home you are buying is priced above £500,000, you will not be eligible for a saving and you will have to pay normal stamp duty rates.

We hope that you found this article useful. If you are looking to purchase a property right now, we highly suggest you enquire soon to ensure a smooth completion before Christmas!

To enquire about a property, contact us on 01332 383838 or email [email protected].

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