On the 30th of September, the Stamp Duty holiday came to an end in England and Northern Ireland. The tax savings were introduced in July 2020 by the Chancellor to stimulate economic activity by boosting transactions in the housing market, offsetting the anticipated effects of the Coronavirus pandemic.
It’s thought that hundreds and thousands of home buyers have benefited from the tax cut since it began in 2020. In July 2021, the Government announced a tapered end to the stamp duty holiday, reducing the amount buyers could save with home buyers paying no stamp duty on homes priced at or below £250,000. On the 1st of October, the stamp duty holiday officially ended with tax rates returning to normal as per the rates pre-covid.
Stamp Duty Rates from 1st October 2021
From 1st October homeowners will have to pay stamp duty on all purchases above £125,000. If you’re buying a main property, you won’t pay any stamp duty on the portion of the property priced at or below £125,000.
- £0 – £125,000 =0%
- £125,001 – £250,000 =2%
- £250,001 – £925,000 =5%
- £925,001 – £1,500,000 =10%
- £1,500,001+ =12%
If you buy a property for £250,000, you’ll get the first £125,00 tax-free and then will pay 2% tax on the remaining portion. For properties worth between £250,001 – £925,000, you’ll pay 5% tax, increasing to 10% tax for properties priced £925,001 – £1,500,000, and if you spend over £1,500,000, you’ll pay 12% stamp duty tax.
Therefore if you’re buying a home for £300,000, the stamp duty will be calculated as follows: 0% on the first £125,000, 2% on the next £125,000 = £2,500, then 5% of the final £50,000 = £2,500, giving you the grand total stamp duty payable in the sum of £5,000. It’s worth noting that stamp duty rates are higher for those buying a second home – click here for further information on this.
If you would like to work out how much SDLT to pay, the government provides a handy SDLT calculator found on their website below:
I’m a first-time buyer – is stamp duty tax payable?
If you’re a first-time buyer in England and Northern Ireland, you will not have to pay any stamp duty tax on property priced at or below £300,000. However, first-time buyers will pay 5% on a property, or the portion of a property, priced between £300,001 and £500,000. For first homes priced above £500,000 – you won’t be eligible for a saving, and normal stamp duty rates will apply.
- £0 – £300,000 = 0%
- £300,001 to £500,000 = 5%
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