The current stamp duty holiday, which was introduced on July 8th 2020 in England and Northern Ireland, was extended past April 21 to the end of June with some relief continuing until the end of September.

This means a variety of changes are now due over the coming months as the government phases out the stamp duty holiday; bringing significant increases to your Stamp Duty Taxes dependant on your house buying status and the value of your property.

Currently, the level at which you begin to pay stamp duty starts at £500,000 but this is being cut by half after 30th June. From June through to September the level at which stamp duty becomes payable will be £250,000, returning to the normal £125,000 by 1st October.
Stamp Duty percentage rates are charged at different levels and you can see the changes to these over the coming months below:

For purchases completed by 30 June, the current stamp duty holiday remains in place. So you’ll pay:
– Nothing on properties purchased for up to £500,000
– 5% on the portion between £500,001 and £925,000
– 10% on the portion between £925,001 and £1,500,000
– 12% on the portion costing more than £1,500,001

For purchases completed between 1 July and 30 September, there’ll be some relief. So you’ll pay:
– Nothing on properties purchased for up to £250,000
– 5% on the portion between £250,001 and £925,000
– 10% on the portion between £925,001 and £1,500,000
– 12% on the portion costing more than £1,500,001

For purchases completed from 1 October onwards, the stamp duty returns to normal. So you’ll pay:
– Nothing on properties purchased for up to £125,000
– 2% on the portion between £125,001 and £250,000
– 5% on the portion between £250,001 and £925,000
– 10% on the portion between £925,001 and £1,500,000
– 12% on the portion costing more than £1,500,001

Understandably this is putting a lot of pressure on house sales and all involved in that process.

First-time buyers do retain their original benefits when the rates drop. From 1st July ongoing if you are making a first-time purchase there will be no stamp duty on house purchases up to £300,000.

When it comes to 2nd home purchases the 3% on additional property purchases has always remained but the additional % rates will be phased back in as per the list above over the coming months.

Our Mortgage advisers are always on hand to help with the process and can most times streamline the application through with an appropriate lender helping to progress cases and reduce stress for our clients.