The reduced rates of stamp duty on residential properties from 1st July 2021 will still be welcome news for many prospective new home buyers. If you buy a residential property between 1st July and 30th September 2021 you will pay Stamp Duty Land Tax (SDLT) on the amount you pay above £250,000. However, this will change again on 1st October 2021 when the nil rate band will return to the standard amount of £125,000.

Remember, the rate of stamp duty that applies to your purchase depends on the date you complete and not the date that you exchanged contracts.

What will I pay between 1st July & 30th September 2021?

You can use the Government’s SDLT calculator to work out what you will need to be pay.

But below gives an idea of what to expect, according to HMRC.

  • Up to £250,000 – Zero
  • The next £675,000 (the portion from £250,001 to £925,000) – 5%
  • The next £575,000 (the portion from £925,001 to £1.5 million) – 10%
  • The remaining amount (the portion above £1.5 million) – 12%

From 1st July 2021 the special rules and rates for first-time buyers apply, including first-time buyers purchasing property through a shared ownership scheme.

What happens from 1st October 2021?

The nil rate band will return to the standard amount of £125,000.

  • Up to £125,000 – Zero
  • The next £125,000 (the portion from £125,001 to £250,000) – 2%
  • The next £675,000 (the portion from £250,001 to £925,000) – 5%
  • The next £575,000 (the portion from £925,001 to £1.5 million) – 10%
  • The remaining amount (the portion above £1.5 million) – 12%

 

Are you currently looking to move and are considering a new build property? Take a look at our current developments here!

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