After being extended once, from 31st March to 30th June, we officially saw the end of the original stamp duty holiday.
Introduced to combat the effects of the coronavirus pandemic on the housing market, a stamp duty tax holiday was granted by the Chancellor in July 2020.
This meant that people in England and Northern Ireland purchasing homes didn’t have to pay any tax on properties up to £500,000.
Although the 30th June has now passed and the maximum savings available have now ended – the stamp duty perks haven’t finished just yet. You could still make some stamp duty savings if you complete on a property before the end of September.
A staggered return to original stamp duty
Since 1st July, there has been a staggered return to previous stamp duty rates, with the nil-rate band lowered from £500,000 to £250,000. This will be in place until the end of September.
However, from the 1st October the stamp duty threshold will return to how it was pre-pandemic, which is £125,000.
Wanting to take a look at the houses we’ve got for sale that are worth £250,000 or less? Take a look at our houses for sale.
How much will you be paying in stamp duty until September 30th?
- Property purchase price up to £250,000 – 0% stamp duty
- 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%
As an example, if you buy a house for £300,000, you’ll pay stamp duty of 5 per cent on the £50,000 above the threshold. That equates to a stamp duty bill of £2,500.
You can also use a stamp duty calculator to work out how much you will pay based on the changes. Find a property, input the
How much will you be paying in stamp duty as of October 1st?
From 1st October this year, stamp duty rates will revert to what they were for properties purchased before the payment holiday started in July 2020.
- Property purchase price up to £125,000 – 0% stamp duty
- 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%
As an example, if you buy a house for £350,000, you will pay stamp duty of 2% on the amount between £125,000 and £250,000 and then 5% on the amount above £250,000. That equals a stamp duty bill of £2,500 + £2,500 = £5,000.
Soaring property sales
Zoopla estimates that 1.5 million property sales will take place this year, making 2021 the busiest market since 2007.
Additionally, new research indicates the vast majority of house sales will continue even from those buyers who missed the June stamp duty deadline or fail to meet the next deadline in September.
Meanwhile, only 4% of buyers said they would abandon their plans to purchase. And 25% said they would try to renegotiate the price with the seller.
Remember, you must complete a property purchase by 30th September to benefit from the staggered extension of the stamp duty holiday rates.
Contact Belvoir today if you have any questions about selling your property or stamp duty changes and one of our friendly team will be happy to help!
