Stamp Duty Land Tax News

Stamp Duty holiday enters new phase

From 1 July to 30 September, buyers can still benefit from not paying Stamp Duty Land Tax (SDLT) on properties that cost up to £250,000 across England and Northern Ireland.
The previous phase of the SDLT holiday (where the nil rate band was previously up to £500,000) helped stimulate the housing market, with estate agents reporting an influx of both buyers and sellers keen to take advantage of cuts to SDLT.

With the lowering of the nil rate band, first-time buyers may also see a competitive advantage as from 1 July the special rules and rates for first-time buyers return, including first-time buyers purchasing property through a shared ownership scheme.

Stamp Duty rates from 1 July:

Purchase price  - Main residence - Additional homes
£0 – £250,000 0% - 3%
£250,001 – £925,000 5% - 8%
£925,001 – £1.5m 10% - 13%
£1.5m+ 12% - 15%

End of the Stamp Duty holiday:

Stamp Duty Land Tax rates will return to the original rates from 1 October 2021. This means the nil rate band will be applicable only on purchases up to £125,000, and 2 per cent up to £250,000. First-time buyers, however, will continue to benefit from relief on purchases up to £300,000.

Property tax in Scotland and Wales:

The Land Transaction Tax (LTT) in Wales ended on June 30 2021, under the normal rate stamp duty is applied to homes worth more than £180,000. Meanwhile, the Land and Buildings Transaction Tax (LBTT) in Scotland ended on March 31 2021.

Font: Propertymark