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What happens when Stamp Duty holiday ends

Back in July 2020 a Stamp Duty Land Tax Holiday was announced that temporarily reduced rates until 30th June 2021. This meant that there was to be NO Stamp Duty paid on the first £500,000 of a property purchase, after that the standard rates would apply.

This would mean for a house up to £500,000 no Stamp Duty would apply making a saving of £10,000 on the standard rates. For a property at £600,000 the saving would be £15,000.  

On the 3rd of March 2021, an extension to that holiday was announced that run from the 1st of July 2021 until the 30th of September 2021 but by halving the NIL tax rate to the amount paid over £250,000 for a property. 

After the 30th of June, the tax break is halved to the first £250,000 of any transaction. This would mean for a house up to £250,000 Stamp Duty would NOT apply making a saving of £2,500 on the standard rates. This saving of £2,500 would then apply to all purchases above that threshold based against the standard rates due to be brought back in on the 1st of October 2021.  

Although the opportunity to make a big saving has just about gone, there is a £2,500 saving to be made on properties purchased for over £250,000 and the transaction completed up until the end of September 2021.  

However, if you are purchasing a second property for any reason, then an additional levy with a minimum of 3% is still due.  This can be claimed back within 36 months if you subsequently sell your original main residence. This levy does not apply caravans, mobile homes or houseboats.     

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