Stamp Duty Update – Residential Property
The Chancellor announced in the March 2021 budget that the Stamp Duty Land Tax Holiday for residential property has been extended for a further three months. This is excellent news for those of our clients whose transaction would not complete by the 31st March 2021. Any property under the sum of £500,000.00 will continue to have the nil rate banding applied as long as completion takes place prior to the 30th June 2021.
From 1st July 2021 any property under the sum of £250,000.00 will continue to have a nil rate banding applied up until the 30th September 2021. For any property over the sum of £250,000.00 the standard rates of Stamp Duty will apply.
From 1st October 2021, all transactions will be subject to the original standard rates of Stamp Duty as set out in the table below.
Standard rates of Stamp Duty:
|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%|
If you have any queries in relation to the new rules regarding the Stamp Duty Holiday, please do not hesitate to contact the Conveyancing Department or use our enquiry form