In addition to other measures aimed at supporting the UK’s housing market, Rishi Sunak has announced that he is to extend the existing Stamp Duty Holiday until the end of June 2021. Stamp duty will then be phased back in again over the following months until 30 September 2021, although some changes will then remain in place.
In a response to the government’s actions in reaction to Covid, the Treasury had introduced a moratorium on stamp duty chargeable on all property up to £500,000. This extension has been extended to allow for a glut in transactions to be cleared, before phasing in stamp duty again later in the year.
Stamp Duty Rates were previously as follows;
Up to £125,000: 0%
On the portion from £125,001 to £250,000: 2%
On the portion from £250,001 to £925,000: 5%
On the portion from £925,000 to £1.5m: 10%
Above £1.5m: 12%
The savings available to those buying properties with a value less than £500,000 are, therefore, significant.
The Holiday Rates are as follows;
Up to £500,000: 0%
On the portion from £500,001 to £925,000: 5%
On the portion from £925,001 to £1.5m: 10%
Above £1.5m: 12%
The tax-free threshold announced in the recent Budget will be cut from £500,000 to £250,000 on housing sales that complete between 1 July until 30 September to allow some phasing back to normal and the threshold for the nil rate band will then fall back to its usual level of £125,000 on 1 October.
First-time buyers will still benefit from existing exemptions and second home buyers are still subject to the 3% slab rate in addition to the above.
A 2% stamp duty levy will also be imposed on non-UK residents who buy property in England and Northern Ireland from April 2021.
Remember, stamp duty becomes payable upon completion, so the holiday rates set out above will likely only benefit those with transactions already underway, although the phasing relief is still significant.
Recent posts
The government has announced plans to make buying or selling a home cheaper and quicker with what is being called the “biggest shake-up to the homebuying system in this country’s history.”
More borrowers using equity release
7 days ago
Almost one in five equity release mortgages are now taken out to provide financial support to family.
Buyers purchasing properties sooner
9 days ago
According to industry data, the expected wait for those looking to buy a property has dropped from just over 11 months to less than six months.
It is common for your first mortgage payment to be higher than your subsequent monthly payments for two reasons.
What to do just before you get your keys
14 days ago
Firstly, a big congratulations, you’ve now exchanged contracts! After weeks and months of waiting, you are about to move in. What should you do first?
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
29 Aug 2025
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More information
Trusted by
