As the Chancellor announced in the Budget 2021. The current stamp duty land tax holiday for residential properties purchased in England and Northern Ireland has been extended until the end of June 2021, and some relief will continue until the end of September 2021. The tax break was due to end on the 31st March 2021.

Currently, the point at which you start paying stamp duty land tax is £500,000. From July 2021, this will be reduced to £250,000 – still double the normal level – until the end of September. From October, stamp duty land tax will return to previous levels, with the point at which you start paying set at £125,000.

The Stamp duty land tax explained

Stamp duty land tax is a tax paid on the purchase of property or land in England and Northern Ireland.

The extension of the stamp duty land tax holiday will provide welcome relief for people buying and selling homes.

Here’s how rates are changing if you’re buying a property as your main residence in England and Northern Ireland:

• For purchases completed by 30 June, the current stamp duty land tax holiday remains in place. So you’ll pay:
  – Nothing on properties purchased for up to £500,000
  – 5% on the portion between £500,001 and £925,000
  – 10% on the portion between £925,001 and £1,500,000
  – 12% on the portion costing more than £1,500,001

• For purchases completed between 1 July and 30 September, there’ll be some relief. So you’ll pay:
  – Nothing on properties purchased for up to £250,000
  – 5% on the portion between £250,001 and £925,000
  – 10% on the portion between £925,001 and £1,500,000
  – 12% on the portion costing more than £1,500,001

• For purchases completed from 1 October onwards, the stamp duty land tax returns to normal. So you’ll pay:
  – Nothing on properties purchased for up to £125,000
  – 2% on the portion between £125,001 and £250,000
  – 5% on the portion between £250,001 and £925,000
  – 10% on the portion between £925,001 and £1,500,000
  – 12% on the portion costing more than £1,500,001

Different rates may apply for companies, individuals purchasing additional properties or non-UK resident purchasers.

We have a dedicated team of specialists to deal with Stamp Duty Land Tax planning and compliance advice so if you have any questions please get in touch.

Please call us on – 01905 700949

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