Updated: 18 June 2021
STAMP DUTY
When do stamp duty rates change?
The temporary stamp duty holiday up to £500,000 ends on the 30th June 2021. The holiday meant there was no stamp duty tax to pay for first-time buyers and home movers on the first £500,000 of their purchase. The reduction offered buyers a potential saving of up to £15,000.
From 1st July 2021, there will be a staggered return to previous stamp duty rates, with the nil-rate band lowered from £500,000 to £250,000 until the end of September 2021. From 1st October 2021, it will return to £125,000.
The amount of stamp duty tax you’ll need to pay depends on a wide range of factors, including how much you pay for the property, the location of the property, whether you have a UK passport, when you buy and whether you’re a first-time buyer. It also depends on whether you’re buying a main home, a holiday home or an investment property. Use this useful stamp duty calculator to work out how much you will pay.
1st October 2021: Stamp duty rates are due to return to the levels which were in place prior to 8th July, 2020. You can check the rates in our chart below.
The Stamp Duty Land Tax (SDLT) is a charge placed on all residential property purchases over £125,000 in England, Wales and Northern Ireland. From April 2016 an additional 3% SDLT surcharge is payable on a second home or buy to let property with a purchase price of £40,000 or above. Please see the chart below for current charges.
If you are a First Time Buyer then as of 22nd November 2017, there is no stamp duty payment due on purchases up to £300,000.
| Property Value | Current Stamp Duty Rate | Rate for BTL and 2nd Properties |
|---|
| Up to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1.5m | 10% | 13% |
| Over £1.5m | 12% | 15% |
How is Stamp Duty (SDLT) calculated ?
Example: If you purchase a property for £275,000, the SDLT you would owe is calculated as follows
| Property Value | Current Stamp Duty Rate | Cost | Rate for BTL and 2nd Properties | Cost |
|---|
| On the First £125k | 0% | £0 | 3% | £3,750 |
| On the next £125k | 2% | £2,500 | 5% | £6,250 |
| On the Final £25k | 5% | £1,250 | 8% | £2,000 |
| Total Stamp Duty | | £3,750 | | £12,000 |
For more information on SDLT we would recommend you speak to your solicitor or a tax advisor.
Please note information correct as of June 2021