Since 30th June marked the last day of the main stamp duty holiday in England, I thought it’d be helpful to summarise the changes and share them here for my clients and property industry colleagues.

Over the last year, the UK property market has been greatly stimulated by the stamp duty holiday – a tax break created in response to the pandemic, which has helped the economy enormously; I’ve certainly seen an uptick in survey and valuation enquires as people race to complete property purchases before the deadline.

But as the economic landscape improves, the stamp duty holiday is set to be phased out. So what happens next, and what do these changes mean for property buyers? Here’s my quick guide which explains everything you need to know:

What is stamp duty?

Stamp duty is a tax paid on property purchases over a certain price or ‘threshold’.

Why was there a stamp duty holiday?

The thresholds at which buyers start paying stamp duty in England were temporarily increased in response to the coronavirus pandemic. Since June 2020, buyers didn’t have to pay any stamp duty on the first £500,000 of their purchase price.

What’s happening now?

The main stamp duty holiday in England ran until 30th June 2021. From 1st July, the stamp duty holiday will be tapered, and it’s set to finish completely on 30th September. Normal stamp duty rates will apply from 1st October.

How will stamp duty work from now on?

Until 30th June 2021: no stamp duty was due on the first £500,000 of any primary residential property.
From 1st July until 30th September: no stamp duty will be due on the first £250,000 of any primary residential property – though if you’re a first-time buyer, this threshold is higher.
From 1st October: the stamp duty holiday officially ends on 30th September 2021, and normal stamp duty rates will resume.

What are the stamp duty rates between now and October?

From 1 July, stamp duty kicks in for property purchases above £250,000 at the following rates:

£0 – £250,000 = 0%
£250,001 – £925,000 = 5%
£925,001 – £1,500,000 = 10%
£1,500,001+ = 12%

Source: BBC News

What are the stamp duty rates from October onwards?

In October, stamp duty rates are due to return to normal. This means the point that buyers start paying stamp duty will revert back to £125,001:

£0 – £125,000 = 0%
£125,001 – £250,000 = 2%
£250,001 – £925,000 = 5%
£925,001 – £1,500,000 = 10%
£1,500,001+ = 12%

Source: BBC News

What do these changes mean for buyers?

The good news for buyers is that between now and 30th September, there’s still a window of time to pay a reduced rate of stamp duty on property purchases.

However, you need to have completed your property purchase by 30th September to benefit from the stamp duty holiday. If you exchange on or before 30th September, but complete after 30th September, then you'll have missed the deadline and will need to pay the normal rate of stamp duty.

Further information

For more information about stamp duty thresholds, including rates for first-time buyers, please visit the UK government website here. You can also use the government's Stamp Duty calculator to find out how much you would pay.

Need a survey or valuation?

If you’re looking to benefit from the stamp duty holiday while it’s still available and need a fast, thorough and reliable survey or valuation, feel free to email me or call me on 07957 606886 for an informal, confidential and no-obligation consultation about your requirements.

I work across London and the south-east and offer free Zoom calls both before and after your survey or valuation to talk you through the process, discuss my findings and answer any questions you may have.

Hope you have found this blog helpful!

Warm wishes, Roo x

Stamp duty changes: need to know