Stamp Duty Rates Have Changed…But You Can Still Save

On 1 July stamp duty changes arrived in England and Northern Ireland. However, if you’re a first-time buyer or can complete before 30 September 2021 (T’s & C’s apply), you’re still in a good position as you will pay no stamp duty on properties costing up to £300,000, and a discounted rate on properties up to £500,000.

What is stamp duty?

Stamp duty land tax (SDLT), often known simply as stamp duty, is a tax paid by people buying properties. The amount depends on the price of the property.

Last year, in order to boost the property market and help buyers whose finances were affected by Covid, the government introduced a stamp duty holiday. Buyers didn’t have to pay any stamp duty on the first £500,000 of their purchase price. However, since 1 July, stamp duty applies above £250,000, unless you’re a first-time buyer. The rates will change again on 1 October 2021.

Stamp Duty from 1 July 2021 – 30 September

From 1 July to 30 September 2021, you’ll pay no stamp duty on homes costing up to £250,000.

Property Value Stamp Duty Rate
Up to £250k 0%
£250k to £925k 5%
£925k to £1.5m 10%
Rest over £1.5m 12%

Stamp Duty from 1 October 2021

From 1 October 2021, you’ll pay no stamp duty on homes costing up to £125,000.

Property Value Stamp Duty Rate
Up to £125k 0%
£125k to £925k 5%
£925k to £1.5m 10%
Rest over £1.5m 12%

This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.

First-time buyers
Rates are different for first-time buyers. From 1 July 2021, if you’re a first-time buyer in England or Northern Ireland, you’ll pay no stamp duty on properties worth up to £300,000.

For properties costing up to £500,000, you’ll pay no stamp duty on the first £300,000. You will then pay stamp duty at the relevant rate of 5% on the remaining amount, up to £200,000.

If the property you’re buying is worth over £500,000, you’ll need to pay the standard rates of stamp duty and will not qualify for first-time buyer’s relief.

A person is classed as a first-time buyer if they are purchasing their only or main residence and have never owned a property before in the UK or abroad.

For more details, or if you would like to know rates for second homes or the rates in Wales or Scotland, visit https://www.gov.uk/stamp-duty-land-tax

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