Stamp Duty (Stamp Duty Land Tax “SDLT”) is the tax payable when you buy a residential property or land in England and Northern Ireland. How much, and indeed if, you pay depends on the price and your circumstances as a buyer.

Stamp Duty is calculated in bands based on the price of the property and the buyer pays a percentage of the purchase price.

You might pay more, less or even no Stamp Duty in certain circumstances. For instance, if you are buying your first home you may receive relief that lowers or removes the Tax, however, the purchase of a second home would incur a higher tax charge.

What was the Stamp Duty holiday?

In July 2020, the Government announced that it would cut Stamp Duty until 31st March 2021 to boost the housing market which they then extended until 30th June.

During the holiday, the amount of tax paid on residential properties up to £500,000 was reduced to 0%.

The Stamp Duty holiday will be phased out in two stages: from 1st July to 30th September rates will remain the same but thresholds will be reduced, then on 1st October rates and thresholds will return to pre-holiday limits.

For the period 1st July–30th September 2021:

Property price band	Stamp Duty rate	Additional properties
Property price up to £250,000 (£300,00 for first-time buyers)	0%	3%
£250,001–£925,000	5%	8%
£925,001–£1.5 million	10%	13%
Above £1.5 million	12%	15%

From 1st October 2021:

Property price band	Stamp Duty rate	Additional properties
Property price up to £125,000 (£300,00 for first-time buyers)	0%	3%
£125,001–£250,000	2%	5%
£250,001–£925,000	5%	8%
£925,001–£1.5 million	10%	13%
Above £1.5 million	12%	15%

If you haven’t completed your property purchase by 30^th June 2021 then you will have to pay tax in the new threshold.

There has been lots of activity in the property market with buyers taking advantage of this incentive and the average price of homes in the UK has reached an all-time high (according to rightmove). So will house prices drop off after Stamp Duty returns to normal or will people’s desire to move to coastal locations or find a home that suits their new work/life set up continue to keep the market active?

If you are looking to enter the property market or move house? Call us on 01912571253 or email sales@rajackson.co.uk and we can discuss how we can help you sell your current home or find your new home.