What is Stamp Duty?
Stamp duty is a tax which is more formally known as Stamp Duty Land Tax or SDLT. This tax is payable if you buy a property or land over a certain value and it is calculated as a percentage of the value that property or land relative to its use. More information can be found here.
Since 1st July 2020 the government announced that they were removing the SDLT on all property transactions under £500,000. From the 1st July 2021 until the 1st October 2021 the rates are calculated as follows:
£0-£250,000 = 0%
£250,001-£925,000 = 5%
£925,001-£1,500,000 = 10%
£1,500,000+ = 12%
That means, for example, that for a property purchased for £500,000 before 1st July 2021 the stamp duty was £0 and will now be £12,500, a significant increase.
Is There Still a Stamp Duty Holiday?
Yes, until the 1st October 2021 the rates a slightly lower and will increase again on the 1st October 2021 to the following:
£0-£125,000 = 0%
£125,001-£250,000 = 2%
£250,001-£925,000 = 5%
£925,000-£1,500,000 = 10%
£1,500,000+ = 12%
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