End of SDLT Holiday
14th September 2021Back in July 2020, The Government launched the so-called Stamp Duty Holiday for residential properties, as part of a strategy to give the UK property market a much-needed boost during the Covid 19 pandemic. Stamp Duty Land Tax (SDLT) is payable on purchases of UK property. The amount of consideration which is exempt from SDLT when acquiring a single residential property (the nil rate band) increased from £125,000 to £500,000. The nil rate band remained at this level for just under a year before The Government began phasing out the scheme. On 1 July 2021 the nil rate band initially reduced from £500,000 to £250,000 and is set to return to the pre pandemic level of £125,000 from 1 October 2021, with return of the 2% rate on consideration between £125,000 and £250,000.
The changes to Stamp Duty Land Tax from 1 October 2021 can be summarized as follows:
SDLT 01/07/2021 – 30/09/2021
| Purchase price of residential property
|
SDLT Main rates | SDLT Higher rates for additional properties |
| Up to £250,000 | 0% | 3% |
| The next £675,000 (up to £925,000) | 5% | 8% |
| The next £575,000 (up to £1.5 million) | 10% | 13% |
| Remainder over £1.5 million | 12% | 15% |
SDLT from 01/10/2021
| Purchase price of residential property
|
SDLT Main rates | SDLT Higher rates for additional properties |
| Up to £125,000 | 0% | 3% |
| The next £125,000 (up to £250,000) | 2% | 5% |
| The next £675,000 (up to £925,000) | 5% | 8% |
| The next £575,000 (up to £1.5 million) | 10% | 13% |
| Remainder over £1.5 million | 12% | 15% |
For first time buyer purchases under £500,000 special rates will continue to apply, with no SDLT due on the first £300,000 and SDLT being charged at 5% on additional consideration up to £500,000. Normal rates apply for first time buyer purchases over £500,000.
Disclaimer - All information in this post was correct at time of writing.
