Stamp Duty Changes

How Much Money Will The Stamp Duty Changes Save Me?1st Jul 2021

by Ruth Elkins on 1st Jul 2021

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Updated: 01 July 2021

See how the latest changes to Stamp Duty will affect you…

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Stamp Duty Holiday Changes

The Stamp Duty Land Tax (SDLT) nil-rate band on properties is now £250,000 until 30 September 2021. (From 1 October 2021, the nil-rate band is set to return to its normal level of £125,000.)

Here are the current Stamp Duty rates following the changes on 1 July 2021:

  • property value up to £250,000 – 0% 
  • next £675,000 (the portion from £250,001 to £925,000) – 5%
  • next £575,000 (the portion from £925,001 to £1.5 million) – 10%
  • remaining amount (the portion above £1.5 million) – 12%.

First Time Buyers

Like most other buyers, you will pay no Stamp Duty on properties up to £300,000 in value.

Second Homes

You will pay the current rate of Stamp Duty for your property plus an additional 3%.

Buy-to-let Homes

These are no different to regular homes.

If the person purchasing a buy-to-let property does not own any other property (ie, they live in their parents’ home) then they will be treated as regular buyers. They will pay 0% Stamp Duty up to £250,000. 

But if they already own a home, this will be classed a second property and they will be subject to the 3% extra in Stamp Duty.

Holiday Homes

As with buy-to-let, if the person buying doesn’t own another property then they will benefit from 0% Stamp Duty up to £250,000.

However, if they already own a home then this will be classed a second property and they will be subject to the 3% extra in Stamp Duty.

Homes Valued At More Than £250,000

For properties costing more than £250,000, the Stamp Duty bands are unchanged. But you will still make a saving of £2,500 on the first £250,000.

So if you bought a £300,000 property for example, you'd pay £2,500 Stamp Duty (5% of the £50,000 above the threshold). Before the changes were announced, you would have had to pay £5,000. 

Important Note: The Stamp Duty cuts apply to properties purchased between 1 July 2021 and the end of the scheme on 30 September 2021. You cannot claim back the Stamp Duty if you complete on or after 1 October 2021.

And with regard to second homes and buy-to-let properties, the distinction is between the number of homes held at the point of completion – regardless of what that home is then used for.

If you want to save money, then you should start looking to buy as soon as possible.

Get Expert Legal Help Buying A Home

Buying a home is usually the biggest and most important purchase you will ever make. 

Get expert legal help from Coles Miller conveyancing solicitor Ruth Elkins, a Partner at our Broadstone office