Stamp Duty Explained

July 4, 2021

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.

Posted by:

Robert Hopps MRICS

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