New Stamp Duty Tax Holiday for Property Buyers

New Stamp Duty Tax Holiday for Property Buyers
Legally reviewed by: Nagma Kazi Updated: In: Conveyancing

If you have questions about the recent stamp duty changes and what they may mean to your house purchase, our leading property and conveyancing solicitors are here to assist you.

When Are The Stamp Duty Changes Effective?

The changes took effect on 8th July 2020 and will remain in place until 1st October 2021 with some reductions from 1st July 2021.

Who Will Benefit From the Changes?

  • The changes are applicable to all buyers, not just first-time buyers
  • The current rates mean that those buying for under £500,000 who do not own a second property will not pay any SDLT until the 30th of June 2021.
  • From the 1st July 2021 to the 30th of September 2021 the threshold will reduce to £250,000.
  • Those buying for more than £500,000 who do not own a second property will only pay SDLT on the proportion above £500,000 at the rates set out below, until the 1st of July 2021 when it will change to £250,000.
  • Companies and those who own a second property will also benefit from the changes but will remain subject to the higher rate on the £40,000+ proportion

What Are The New Stamp Duty Rates?

Until the 30th June 2021 property or lease premium or transfer value

Up to £500,000 – zero (SDLT rate)

The next £425,000 (portion from £500,001 – £925,000) – 5% (SDLT rate)

The next £575,0000 (portion from £925,001 – £1.5 mil) – 10% (SDLT rate)

The remaining amount (the portion above £1.5 mil) – 12% (SDLT rate)

From the 1st of July 2021 property or lease premium or transfer value

Up to £250,000 – zero (SDLT rate)

The next £675,000 (portion from £250,001 – £925,000) – 5% (SDLT rate)

The next £575,000 (portion from £925,001 – £1.5 mil) – 10% (SDLT rate)

The remaining amount (the portion above £1.5 mil) – 12% (SDLT rate)

I Am Mid-Way Through My House Purchase, Will The New SDLT Rate Apply To Me?

Yes. Stamp Duty Land Tax (SDLT) becomes payable at the point of completion, so if your completion has not yet taken effect then the new SDLT rates will apply to you.

I’m Selling My Property, Will These New Rates Have Any Impact On My Sale?

No. SDLT is payable by the purchaser, not the seller.

Who Do I Speak To if I Think The Wrong SDLT Charge Has Been Applied?

If your case has not yet been completed, your solicitor will update your SDLT rate before completion and provide you with a new financial statement.

What If I Am Purchasing an Additional Property?

The higher rate of SDLT is unchanged – so those buying additional properties will still pay the surcharge on transactions over £40,000.

Purchasers of additional properties will still benefit from the new 0% band on the standard rate proportion of their purchase.

Where Can I Find Additional Advice and Guidance?

You can find additional information by visiting the government website.

If you need assistance with conveyancing please contact our team online here or call us on 03458 941 622.

Legal Disclaimer.

All advice is correct at time of publication.