Lower stamp duty land tax threshold in place until October
The stamp duty land tax-free threshold in England and Northern Ireland reduced last month, as the tax holiday introduced in July 2020 began to be phased out.
The first cliff edge for residential property buyers came and went on 30 June 2021, marking the end of a three-month extension announced on 3 March 2021. Buyers who completed their purchases before last month’s deadline avoided having to pay this property tax on the first £500,000 of the property price.
The holiday enabled those who were able to complete their purchases before 30 June 2021 to save up to £15,000 on their stamp duty land tax bills, although others were not so fortunate. Most of those who missed that extended deadline will now pay stamp duty land tax for residential house purchases above £250,000 for transactions completed on or before 30 September 2021.
Above this threshold, a 5% stamp duty land tax rate applies on the portion of the property price between £250,000 and £925,000. For buyers of additional residential properties that are not their main residence, the 3% surcharge kicks in immediately.
First-time buyers, who also benefited from the stamp duty holiday, now pay tax on properties worth more than £300,000. A 5% tax rate applies between £300,000 and £500,000, although these entitlements are lost when first-time buyers purchase a property for more than £500,000.
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