During the pandemic buyers have been able to benefit from a residential property stamp duty land tax (SDLT) holiday and enjoy reduced tax rates. The SDLT holiday has been gradually reduced since inception with the first reduction applying after 30th June 2021. Since then, the SDLT holiday has applied to the first £250,000. However, at the end of the month, this is set to change and from 1st October the old rates will apply.
As a reminder, the current rates from 1st July to 30th September are as follows:
- Up to £250,000 – 0%
- The next £675,000 (from £250,001 to £925,000)- 5%
- The next £575,000 (from £925,001 to £1.5 million) – 10%
- The remaining amount (anything above £1.5 million) – 12%
From 1st October 2021 the rates will be as follows:
- Up to £125,000- 0%
- The next £125,000 (from £125,001 to £250,000)- 2%
- The next £675,000 (from £250,001 to £925,000)- 5%
- The next £575,000 (from £925,001 to £1.5 million)- 10%
- The remaining amount (anything above £1.5 million) -12%
For those who are currently in the process of buying a property it is important to know that the SDLT applies from the date of completion and not the date of exchange.
SDLT can be an extremely complex tax and there may be reliefs available that you or your solicitor are not aware of. Our website has some useful information on potential SDLT savings.
If you have any questions regarding stamp duty, please feel free to contact Marc Dorsett on 01245 228146 or dorsettm@gepp.co.uk for further information.
