Stamp Duty Holiday Explained – June 2021
By Nick Staton – Owner Staton Estate Agents
There is much talk and some confusion over the ending of Governments stamp duty holiday and whilst there is change to this benefit on the 30th June 2021, there are still savings to be made.
How to Calculate Stamp Duty
Stamp Duty Land Tax (SDLT), it’s official title, had its nil rate band, which is the rate before you start paying SDLT on residential property, temporarily increased to £500, 000 on the 1st July 2020 and was originally due to end on 31st March 2021 but later extend to 30th June 2021.
Setout below, in date order, are the rates at which Stamp Duty Land Tax (SDLT) will be payable over the coming months and examples of how SDLT is calculated. Please note that stamp duty becomes payable on the date of completion and not exchange of contracts.
The Stamp Duty Land Tax on residential property – (For use as an example only)
To calculate Stamp Duty for your own property purchase please use the governments stamp duty calculator – Stamp Duty Calculator
1st July 2021 – 30 September 2021
From the 1st July 2021, the nil rate band is reduced to £250,000, this ends on 30 September 2021.
| Purchase price bands £ | SDLT rate |
| Up to £250,000 | 0% |
| 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% |
Example
As an example, if you are buying a property at £500,000 and complete on the sale between 1 July 2021 and 30 September 2021, the stamp duty calculation is –
| Purchase price bands £ | Rate % | SDLT £ |
| Up to 250,000 | 0 | 0 |
| Above 250,000 and up to 925,000 | 5 | 12,500 |
| Above 925,000 and up to 1,500,000 | 10 | 0 |
| Above 1,500,000+ | 12 | 0 |
| Total due | 12,500 |
From 1st October 2021
From the 1st October 2021, the nil rate band will revert the pre-pandemic level of £125,000.
| Purchase price bands £ | SDLT rate |
| Up to £125,000 | 0% |
| Above £125,000 to £250,000 | 2% |
| Above £250,000 and up to £925,000 | 5% |
| Above £925,000 and up to £1.5 million | 10% |
| Above £1.5 million | 12% |
Example
As an example, if you are buying a property at £500,000 and complete on the sale after 1 October 2021, the stamp duty calculation is –
| Purchase price bands £ | Rate % | SDLT £ |
| Up to 125,000 | 0 | 0 |
| Above 125,000 and up to 250,000 | 2 | 2,500 |
| Above 250,000 and up to 925,000 | 5 | 12,500 |
| Above 1,500,000+ | 10 | 0 |
| Total due | 15,000 |
The above are only intended as a guide and other factors do have implications on the calculation, particularly if you are an overseas buyer, have a second home or are a first time buyer. Please consult your lawyer before agreeing the purchase of any property.
The government provide a helpful Stamp Duty Land tax calculator – Click here
If you require any further advice please contact us
Nick Staton, Founder Statons Estate Agents
From Cottages to Country Estates