Stamp duty holiday: How much do I have to pay now?
- 18th September 2021
It means that home buyers will have to pay stamp duty on all purchases above £125,000.
How does the Stamp Duty Holiday affect your house move?
In 1 July 2020, the government announced a year-long cut to help buyers whose finances were affected by Covid.
Until June 2021, home buyers didn't have to pay stamp duty on the first £500,000 of a purchase price.
This meant a saving of up to £15,000.
The government later extended the tax holiday from 1 July until 30 September this year. During this period - which is now coming to an end - home buyers don't have to pay stamp duty on the first £250,000:
- £0-£250,000 = 0%
- £250,001-£925,000 = 5%
- £925,001-£1,500,000 = 10%
- £1,500,000+ = 12%
From 1 October 2021, rates will return to pre-Covid levels. That means the point you to start paying stamp duty will be £125,001:
- £0-£125,000 = 0%
- £125,001-£250,000 = 2%
- £250,001-£925,000 = 5%
- £925,001-£1,500,000 = 10%
- £1,500,001+ = 12%
You can use the government's Stamp Duty Land Tax (SDLT) calculator to find out how much you would pay.
SOURCE: bbc.co.uk