What is Stamp Duty?
Stamp duty is a tax which is more formally known as Stamp Duty Land Tax or SDLT. This tax is payable if you buy a property or land over a certain value and it is calculated as a percentage of the value that property or land relative to its use. More information can be found here.
Is There a Stamp Duty Holiday?
Since 1st July 2020 the government announced that they were removing the SDLT on all property transactions under £500,000. From the 1st July 2021 until the 1st October 2021 the rates are calculated as follows:
- £0-£250,000 = 0%
- £250,001-£925,000 = 5%
- £925,001-£1,500,000 = 10%
- £1,500,000+ = 12%
That means, for example, that for a property purchased for £500,000 before 1st July 2021 the stamp duty was £0 and will now be £12,500, a significant increase.
Is There Still a Stamp Duty Holiday?
Yes, until the 1st October 2021 the rates a slightly lower and will increase again on the 1st October 2021 to the following:
- £0-£125,000 = 0%
- £125,001-£250,000 = 2%
- £250,001-£925,000 = 5%
- £925,000-£1,500,000 = 10%
- £1,500,000+ = 12%
Feel free to give us a call to discuss your next property move.
