Residential Property – STAMP DUTY HOLIDAY EXTENSION – updated 8th March 2021

Residential Property – STAMP DUTY HOLIDAY EXTENSION – updated 8th March 2021

Solicitors in Shropshire

COVID-19 STAMP DUTY HOLIDAY 

The Chancellor has announced that the stamp duty holiday that was due to end on 31st March 2021 will be extended.

The nil rate tax band for all sales up to £500,000 in England and Northern Ireland, will now continuing until 30th June 2021.

A nil rate band for all sales up to £250,000 will be in place between 1st July 2021 and 30th September 2021.

The nil rate band will return to the standard amount of £125,000 from 1st October 2021.

First time buyers relief, where buyers have no stamp duty to pay on the first £300,000 of a sale, will resume from 1st July 2021.

What is stamp duty?

Stamp duty is a tax paid by people buying properties, although it varies slightly across the UK.

In England and Northern Ireland buyers pay Stamp Duty Land Tax.

In Scotland it is Land and Buildings Transaction Tax, while in Wales buyers pay Land Transaction Tax.

The amount handed to the government depends on where you are in the UK, the price of the property and whether you’re a first-time buyer.

What are the standard rates of stamp duty?

In England and Northern Ireland stamp duty is paid on land or property sold for £125,000 or more.

However, first-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.

For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.

Landlords pay an extra 3% of stamp duty when they purchase a buy-to-let property in England and Northern Ireland.

Contact Hatchers on 01743 248545 or 01948 663361 for any house sale or purchase enquiries.