Stamp Duty Holiday Ending

At the end of June (30th) the extended stamp duty holiday will come to an end, which currently stands at no tax being levied on the first £500,000 of property purchases in England and Northern Ireland.

To help with the transition back to normal rates there will be a tapering off period until the 30th of September 2021 where the stamp limit is reduced to £250,000. The details of the transition are here below:

• 0% stamp duty on the portion of the property below £250,000
• 5% on the portion of the property between £250,001 and £925,000
• 10% on the portion of the property between £925,001 and £1.5 million
• 12% on the portion above £1.5 million
  

It should be noted that those looking to buy a second property or purchase as a buy-to-let are required to pay an additional charge of 3% on top of the current rates. This is something that has persisted from the old system into the modified holiday rates.

This would change the rates too:

• 3% stamp duty on the portion of the property below £500,000
• 8% on the portion of the property between £500,001 and £925,000
• 13% on the portion of the property between £925,001 and £1.5 million
• 15% on the portion above £1.5 million

Come the 1st of October 2021 the rates will return to normal:

• 0% stamp duty on the portion of the property below £125,000
• 2%  on the portion of the property between £125,001 to £250,000
• 5% on the portion of the property between £250,001 to £925,000
• 10% on the portion of the property between £925,001 and £1.5 million
• 12% on the portion above £1.5 million

The stamp duty income represents a £12bn income for the HM Revenue and Customs (HMRC) which is roughly 2% of the tax collected by the Treasury. In a time when the treasury is searching for every penny it is understandable that calls for the stamp duty system to be removed have been strongly dismissed.