Let’s talk about the end of the Stamp Duty holiday

What is Stamp Duty?

Stamp Duty Lan Tax (SDLT) is applied to some residential property purchases in England and Northern Ireland. Ordinarily, there are different tax rates for different purchase prices ranging from 0% (up to £125,000) to 12% (in excess of £1,500,00).

How is it changing?

A decrease in stamp duty was introduced in July 2020 to help buyers whose finances were affected during the pandemic. It was announced it would last until 31^st March 2021 which meant that buyers didn’t have to pay stamp duty on the first £500,000 of their home purchase within this period. This resulted in some buyers saving up to £15,000 which they otherwise would have had to pay.

When this time frame was coming to an end it was decided there would be an extension until 30^th June 2021. This was well received by those stuck in a chain as it meant they had another 3 months to complete their purchase and benefit from the drop in Stamp Duty. After this period, it was decided the discount would still be available but at a reduced rate until 30^th September, with house buyers who complete before this date able to benefit from a Stamp Duty threshold of £250,000 instead of £125,000. This means that on the first £250,000 of a house sale completed before 30^th September 2021 you wouldn’t need to pay any Stamp Duty.

From 1^st October 2021 the rates will return to normal which means that in England you will start paying Stamp Duty from £125,001. Please view the diagram above to see how much Stamp Duty you will need to pay should you purchase a house within these price ranges. You can also use the government’s Stamp Duty calculator to see how much you would pay. However please note if you’re buying your first home you are not required to pay Stamp Duty on properties up to £300,000, anything over this amount and you will be required to pay 5% Stamp Duty.

What’s next?

If you’re looking to purchase your next home unfortunately you won’t be able to benefit from the Stamp Duty Holiday anymore. However, we offer a range of residential mortgage products to suit your circumstances, with personal in-house mortgage advisers, no arrangement or overpayment fees and mortgage repayments straight from your payroll (available in 28 forces). Click the button below and arrange a call back with one of our friendly team to discuss your circumstances.