Stamp duty rates have now changed from 1 July 2021 as the tax holiday introduced in June 2020 starts to be phased out.
Stamp duty holiday meant a saving of up to £15,000 for people buying homes and it certainly has done what it aimed to do - boosted the property market by helping buyers whose finances were affected by Covid.
How much do I have to pay now?
The next stage is 1st July to 30th September 2021, and the rates are as follows:
Up to £250,000 - no stamp duty
£250,001 to £925,000 – 5%
£925,001 to £1.5m – 10%
Above £1.5m – 12%
From 1 October 2021, rates are due to return to normal. That means the point you to start paying stamp duty will revert to £125,00:
Up to £125,000 - no stamp duty
From £125,001 to £250,000 – 2%
£250,001 to £925,000 – 5%
£925,001 to £1.5m – 10%
Above £1.5m – 12%
This means that from 1st October if you buy a property valued at £300,000, the stamp duty charge you will pay will be £5,000 which is calculated as follows:
0% on the first £125,000 = £0,
2% on the next £125,000 = £2,500,
5% on the final £50,000 = £2,500.
Top tip & useful tool to use: the government's Stamp Duty Land Tax (SDLT) calculator to find out how much you would pay.
If you wish to obtain a mortgage and find out what is out there and available for you, please contact us. Please call us at Penn Financial on 0333 34 44 34 8. We are here to help and make the processes easier for you, saving you time and money.
Penn Financial | 0333 34 44 34 8
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