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Stamp Duty 2021

From 1 October 2021, the tax holiday on stamp duty rates ended and home buyers in England and Northern Ireland are required to pay on all purchases above £125,000.

Residents in Wales, where stamp duty is known as ‘land transaction tax’, are required to pay on purchases above £180,000 after their tax holiday finished 1 July 2021.

What is stamp duty?

When you purchase a property or land, you are required to pay a form of tax called Stamp Duty Land Tax (SDLT). The amount you pay can depend on the price of the property, the location of the property, whether you’re a first-time buyer or whether you’re a UK resident.

What are the prices now?

Those that are familiar with the tax rates pre-Covid will recognise the tiers as they return to their original percentages. This means that if you’ve bought a property in England or Northern Ireland from 1 October 2021, you’ll have to pay the following:

Property or lease premium or transfer value SDLT rate
Up to £125,000 Zero
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%

 

If you’ve bought a property in Wales from 1 July 2021, you’ll have to pay the following:

Property or lease premium or transfer value SDLT rate
Up to £180,000 Zero
£180,001 to £250,000 3.5%
£250,001 to £400,000 5%
£400,001-£750,000 7.5%
£750,001-£1.5m 10%
£1.5m and above 12%

John Phillips, National Operations Director, Spicerhaart and Just Mortgages said:

“While the stamp duty holiday has definitely helped stimulate the market, it is by no means the driving force behind the current rush to buy, and once it ends, the market will continue to thrive.

“The pandemic has certainly played an important role in this desire for houses. Without hospitality venues and holidays to spend on, those fortunate enough to stay in stable employment have saved at record levels. These increased savings have allowed people to consider moving to a bigger property, or a more desirable location.

“What will impact the market more than the end of the stamp duty holiday, is the reopening of pubs, restaurants and international travel. Buying a house will still be a priority for many, but there will be lots of people booking holidays after a year stuck in the UK and savings may be spent on a few weeks in the sun.”