The temporary reduced rate of Stamp Duty Land Tax (SDLT) has now been withdrawn, the Government has confirmed.
The SDLT holiday – introduced in response to the coronavirus pandemic – came to an end on 30 September 2021.
Under the scheme, the stamp duty threshold – the amount after which tax is paid – was increased to £500,000 between 08 July 2020 and 30 June 2021, and £250,000 between 01 July 2021 and 30 September 2021.
The latest statistics suggest that “hundreds of thousands” of homeowners took advantage of the relief, which effectively saved buyers thousands of pounds in tax.
But the threshold has now returned to the standard amount – £125,000. The full rates are as follows:
| Stamp Duty Land Tax rates from 01 October 2021 | 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% |
| The remaining amount (the portion above £1.5 million) | 12% |
Remember, the reduced rate of stamp duty will only apply to properties completed on or before 30 September, meaning those still waiting to complete will pay tax at the standard rate.
First-time buyers, however, will continue to benefit from the special rate of £300,000, reserved for only those who have never purchased a property.
For help and advice with related matters, please get in touch with our Branch Manager, Emma Wallington, at emma@brookings.co.uk
