March 3, 2021

Budget 2021: Conveyancing solicitors welcome Stamp Duty 'Holiday' extension announcement

Holmes & Hills Solicitors welcomes the Stamp Duty ‘Holiday’ extension announced by the Chancellor, Rishi Sunak, during the 3rd March 2021 Budget.

During the eagerly awaited Budget, the Chancellor announced that the Stamp Duty Holiday which was due to end on 31st March 2021 is to be extended, in its current form, until 30th June 2021. This means that for property purchases which complete on or before this new deadline, no Stamp Duty Land Tax will be paid on the first £500,000 of the purchase price.

In a nod to calls from many professionals within the property industry for a gradual end to the Stamp Duty Holiday, the Chancellor further announced that there would be a tapering of the scheme towards its conclusion. Between 1st July 2021 and 30th September 2021, there will be no Stamp Duty payable on the first £250,000 of the purchase price. This is double the £125,000 threshold at which Stamp Duty Land Tax applied prior to the introduction of the Stamp Duty holiday back July 2020.

The below tables set out the new Stamp Duty Land Tax rates through to the planned end of the scheme on 30th September 2021.

The team of specialist conveyancing solicitors at Holmes & Hills welcomes the news, knowing that it will provide peace of mind for many that are currently in the process of moving home and were concerned about the previous end of March deadline fast approaching.

Stamp Duty rates from 8th July 2020 to 30th June 2021

ValueStamp Duty Rate
Up to £500,0000%
The portion from £500,001 to £925,0005%
The portion from £925,001 to £1.5million10%
The portion of £1.5million +12%

Example 1:
In June 2021 you purchase a property for £400,000. If you are not liable for the higher rate surcharge and you are a UK resident, your Stamp Duty calculation would be as below:
0% on the first £500,000 = £0

Your total Stamp Duty Land Tax liability is £0.00.

Example 2:
In June 2021 you purchase a property for £600,000. If you are not liable for the higher rate surcharge and you are a UK resident, your Stamp Duty calculation would be as below:
0% on the first £500,000 = £0
5% on the next £100,000 = £5,000

Your total Stamp Duty Land Tax liability would be £5,000.00.

Stamp Duty rates from 1st July 2021 to 30th September 2021

ValueStamp Duty Rate
Up to £250,0000%
The portion from £250,001 to £925,0005%
The portion from £925,001 to £1.5million10%
The portion of £1.5million +12%

Example 1:
In August 2021 you purchase a property for £400,000. If you are not liable for the higher rate surcharge and you are a UK resident, your Stamp Duty calculation would be as below:
0% on the first £250,000 = £0
5% on the next £150,000 = £7,500

Your total Stamp Duty Land Tax liability would be £7,500.

Example 2:
In August 2021 you purchase a property for £600,000. If you are not liable for the higher rate surcharge and you are a UK resident, your Stamp Duty calculation would be as below:
0% on the first £250,000 = £0
5% on the next £350,000 = £17,500

Your total Stamp Duty Land Tax liability would be £17,500.00.

Stamp Duty rates from 1st October 2021

ValueStamp Duty Rate
Up to £125,0000%
The portion from £125,001 to £250,0002%
The portion from £250,001 to £925,0005%
The portion from £925,001 to £1.5million10%
The portion of £1.5million +12%

Example 1:
In October 2021 you purchase a property for £400,000. If you are not liable for the higher rate surcharge and you are a UK resident, your Stamp Duty calculation would be as below:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the next £150,000 = £7,500

Your total Stamp Duty Land Tax liability would be £10,000.

Example 2:
In October 2021 you purchase a property for £600,000. If you are not liable for the higher rate surcharge and you are a UK resident, your Stamp Duty calculation would be as below:
0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the next £350,000 = £17,500

Your total Stamp Duty Land Tax liability would be £20,00.00.

Get A Conveyancing Quote

Call 01206 593933 and ask to speak with Paige Hornabrook, or complete the form below.

Key Contact

Beth Greig

Associate

bjg@holmes-hills.co.uk

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