Stamp Duty – When September ends!
The reduced rates of Stamp Duty Land Tax (SDLT) payable on the PURCHASE of residential properties ends on 30th September 2021. Some people are unsure as to how much will be payable
if the purchase a property after this date. You usually pay SDLT in increasing proportions of the property price when you buy a residential property and from the 1st October 2021 the following rates will apply :
Up to £125,000 – Zero
£125001 - £250,000 - 2%
£250001 - £925,000 – 5%
£925001 - £1.5m – 10%
£1501000 - 12%
For example. If in October 2021 you buy a house for £295,000, the stamp duty you owe will be calculated as follows:
0% on the first £125,000
2% on the next £125,000 = £2500
5% on the final £45,000 = £2250
Total stamp duty payable = £4750
If you are buying your first home
Currently discounts apply on the amount of SDLT you pay if you are buying your first home or, if anyone you are buying the property with is a First Time Buyer. At the moment, this means you will not pay SDLT up to £300,000 & 5% on the proportion between£300001 - £500,000. If the price is higher than £500,000, the rates are the same as for those who have owned a property previously.
Higher Rates payable for additional properties
You will usually have to pay 3% on top of the usual SDLT rates if buying a new residential property means that you own more than one. For example, buying a property to rent out.
You will NOT pay the extra 3% SDLT if the property you are buying is replacing your main residence which has already been sold. However, if you have NOT sold your main residence on the day you complete on your NEW purchase, you will have to pay the additional rate as you own two or more properties. You can apply for a refund of the SDLT already paid if you sell your main home within 36 months. If it takes longer than 36 months to sell your previous main home due to exceptional circumstances such as because of COVID19 restrictions you may still qualify for a refund.
For further clarification do seek advice from your chosen conveyancing solicitor or visit www.gov.uk/stamp-duty-land-tax/residential-property-rates
Can we help?
Despite the stamp duty holiday coming to an end, the property market is still buoyant & we have buyers still seeking their perfect home or investment property. If you are thinking of selling please get in touch for one of our experts to offer professional advice on current value & how we will market your property. Let YoungsRPS look after one of your most important assets.
Branch Manager/Valuer – Northallerton Office