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Stamp Duty Land Tax Holiday

SOLVING PERSONAL LEGAL MATTERS

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Stamp duty tapering off period:

The stamp duty holiday has been in place since 8 July 2020 and was due to expire on 31 March 2021. Following concerns that many ongoing transactions may fall through once the stamp duty holiday had expired, a tapering off period has been introduced, as opposed to the original plan for the relief to be completely stopped after the 31 March 2021.

Under the revised scheme, from 1 July 2021 to 30 September 2021 the stamp duty threshold for residential properties will be lowered from £500,000 to £250,000 before returning to the original threshold rates from 1 October 2021.

Rates from 8 July 2020 to 30 June 2021:

Anyone completing on a main residence costing up to £500,000 will not pay any stamp duty; the next £425,000 (the portion from £500,001 to £925,000) will be taxed at 5%; the next £575,000 (the portion from £925,001 to £1.5 million) will be taxed at 10%; the remaining amount (the portion above £1.5 million) will be taxed at 12%.

Rates from 1 July 2021 to 30 September 2021:

Anyone completing on a main residence costing up to £250,000 will not pay any stamp duty; the next £675,000 (the portion from £250,001 to £925,000) will be taxed at 5%; the next £575,000 (the portion from £925,001 to £1.5 million) will be taxed at 10%; the remaining amount (the portion above £1.5 million) will be taxed at 12%.

Rates from 1 October 2021:

Anyone completing on a main residence costing up to £125,000 will not pay any stamp duty; the next £125,000 (the portion from £125,001 to £250,000) will be taxed at 2%; the next £675,000 (the portion from £250,001 to £925,000) will be taxed at 5%; the next £575,000 (the portion from £925,001 to £1.5 million) will be taxed at 10%; the next £575,000 (the portion from £925,001 to £1.5 million) will be taxed at 12%.

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FAQs

When do you pay stamp duty and solicitor’s fees?
 
 

As was the case before the SDLT holiday was introduced, stamp duty and solicitor's fees are paid once the property transaction has been completed. Your solicitor may have requested some fees be paid before this, such as for searches and security checks, but the final fee will usually only be due upon completion.

What date does the stamp duty holiday end?
 
 

The stamp duty holiday officially ended on 30 June 2021, but there was a tapering off period that ran until the 30th September 2021 for properties of a value under £250,000. For properties sold for more than this amount, there was a scaling percentage of SDLT due upon completion of a property purchase, as outlined above.

Will the stamp duty holiday be extended 2021 onwards?
 
 

The stamp duty holiday has not been extended again past the tapering-off period that finished on the 30th September 2021. If this changes, we will update our advice.

What happens now that stamp duty holiday has ended?
 
 

On the end of September 2021, when the tapering-off period for the stamp duty holiday ended, the SDLT due on residential properties that sell for more than £125,000 reverted to the rates used before the COVID-19 pandemic. This varies between 2%-12%, depending on property value and goes up to 15% for some buy to let properties.

See the information above for more details of the SDLT applicable to specific property value bands.

Our expert conveyancing team offer specialist assistance with any property sale or purchase. Get in touch to find out more.

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Our dedicated Residential Conveyancing team

Partner and Conveyancing Solicitor

Michelle Thompson

Partner, Conveyancing Solicitor, Blackburn

Residential Conveyancing

PinBlackburn

Call01254 222 349

Jennifer Ross

Jennifer Ross

Associate

Residential Conveyancing

PinBlackburn

Call01254 222471

Kathryn Lofthouse

Kathryn Lofthouse

Residential Property Paralegal

Residential Conveyancing

PinBlackburn

Call01254 222398

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