Stamp Duty holiday ends: rules from 1 July to 30 September 2021

Toby Weiss

Toby Weiss

Content Marketing Manager at Reapit

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Stamp Duty rule guidance-min

The Stamp Duty Land Tax (SDLT) temporary holiday has ended as of 30 June 2021. From 1 July 2021 to 30 September 2021 the nil rate band will be £250,000. The nil rate band will return to the standard amount of £125,000 on 1 October 2021.

Residential Rates on purchases from 1 July 2021 to 30 September 2021

Property or lease premium or transfer valueSDLT rate
Up to £250,0000%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

From 1 July 2021 the special rules and rates for first time buyers apply, including first time buyers purchasing property through a shared ownership scheme.

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings still applies for the period 1 July 2021 to 30 September.

Higher Rates from 1 July 2021 to 30 September 2021

Property or lease premium or transfer valueSDLT rate
Up to £250,0003%
The next £675,000 (the portion from £250,001 to £925,000)8%
The next £575,000 (the portion from £925,001 to £1.5 million)13%
The remaining amount (the portion above £1.5 million)15%

From 1 October 2021 the higher rates will then apply on top of the standard rates of SDLT.

New leasehold sales and transfers

The nil rate band which applies to the ‘net present value’ of any rents payable for residential will be decreased to £250,000 from 1 July 2021 to 30 September 2021.

From 1 July 2021 to 30 September 2021

Net Present Value of any RentSDLT rate
Up to £250,0000%
Over £250,0001%

Companies as well as individuals buying residential property below the nil rate band thresholds shown in the above tables will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.

On 1 October 2021, the temporary rates of SDLT will revert back to the standard rates that were in place prior to 8 July 2020. For the nil rate band that will mean a return to the standard amount of £125,000. Buyers should consider however that the temporary rates in place until 1 October still offer savings over the default rates.

Resources

Guidance: Stamp Duty Land Tax: temporary reduced rates

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