What Happens To Stamp Duty At The End Of September?

What Happens To Stamp Duty At The End Of September?

Announced by the Government earlier this month Stamp Duty rates are due to return to the levels which were in place prior to 8th July, as from 1st October 2021.

Stamp Duty Land Tax (SDLT) is the tax that you pay when you buy land or property over a certain price in England and Northern Ireland. The cost of stamp duty will vary depending on the price of your chosen property and your reason for buying it.

The threshold before Stamp Duty was payable was temporarily raised to £500,000 in July 2020 to try and boost the property market hit by lockdown. The threshold was reduced to £250,000 on the 1st July 2021.

However, as announced by the Government, Stamp Duty rates are due to return to the levels that were in place prior to 8th July, as from 1st October 2021. Meaning that any purchases on a residential property over the value of £125,000 will now be charged Stamp Duty.

What Will My Fees Be At The End Of September?

On October 1st, 2021, you will have to pay Stamp Duty in England and Northern Ireland at the previous levels before the holiday was introduced.

The Stamp Duty rates beginning October 1st, 2021 can be seen below.

  • Up to 125,000 – no stamp duty tax applied
  • The portion between £125,000 and £250,00 – 2%
  • £250,000 and £925,000 – 5%
  • £925,000 and £1.5m – 10%
  • Above £1.5 million – 12%

I Am A First Time Buyer, How Will The Change In Stamp Duty Affect Me?

As a first-time buyer you do not have to pay Stamp Duty on purchases up to £300,000 and then you pay 5% on the portion between £300,00 to £500,000.

If your first home is over £500,000, the rules are the same as they are for people who’ve bought a house before.

The policy is designed to help more first-time buyers secure a home.

How Do I Work Out What My Stamp Duty Will Be?

If you are unsure of what your Stamp Duty will be after October 1st 2021, the government have an online calculator which can help https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

How Can Timms Help Me Move House?

We would be delighted to help you move, for all new conveyancing matters and conveyancing fee quotations, please don’t hesitate to get in contact with us on our freephone 0800 011 6666 or email us at legal@timms-law.com.

Alternatively, we do have an online calculator for a free quotation available at https://www.timms-law.com/conveyancing/

 

 

Lisa Collett

September 2021

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