Past, current, and future changes to the Stamp Duty tax

Favoured among England's and Northern Ireland's homebuyers extended Stamp Duty Holiday is about to end today with the record number of homes undergoing the sales process seen in the last 10 years counting more than 700 thousand.

Despite the end of the Stamp Duty Holiday, you can still benefit from your property purchase until October.

In case you are considering moving in the near future, you should think of using any stamp duty calculators since thresholds on property purchases within the stamp duty are about to change.

When to expect changes to Stamp Duty tax rates?

Around this time last year, stamp duty rates were temporarily reduced exempting first-time buyers and home movers from stamp duty tax on property deals worth £500k max until June 30. This means a possibility for up to £15k saving.

We have already seen one Stamp Duty Holiday extension recently (from the end of March to the end of June). Starting tomorrow we will see a gradual stamp duty tax rates return with the nil-rate reduced from £500k to £250k by September 30 and returned to £125k from October 1.

There are lots of factors influencing the amount of the stamp duty tax you will need to cover. It depends on the date of the purchase, the property type, price and location, and whether you are a UK citizen and a first-time buyer or not. You can find out the amount of the stamp duty tax using suitable calculators.

Past and future crucial Stamp Duty dates

July 8, 2020: The announcement by Rishi Sunak stating that England's and Northern Ireland's Stamp Duty Land Tax was temporarily cut with the nil-rate band raised from £125k to £500k until the end of March 2021.

March 3, 2021: During his Spring Budget speech, Chancellor Rishi Sunak announced that a lot of new property deals wouldn’t have time to be finished by March 31 due to a large number of ongoing home sales. That way the stamp duty holiday was set to last 3 months more, until the end of June. And the stamp duty tax free portion of the property worth (knows as the nil-rate band) would be reduced to £250k starting July 2021 and comprise £125k from October 1.

June 30, 2021: If you wish to get the maximum benefit from the stamp duty holiday available, you have to finish a property deal by June 30.

July 1, 2021: The stamp duty tax rates gradually lower until the end of September with the first £250k of the purchase price being stamp duty tax free for England's and Northern Ireland's buyers who wish to acquire a main home.

September 30, 2021: In case you would like to get the maximum benefit from the staggered return of the stamp duty tax rates, you have to finish the property deal by the end of September.

October 1, 2021: Stamp duty tax rates are set to return to figures which were at work before July 8, 2020.

Should we expect any changes to Land Transaction Tax (LTT) in Wales?

In Wales, LTT temporary reduction had to end by the end of March, however, like the Stamp Duty reduction in England and Northern Ireland, it was extended until the end of June. There are calculators available to work out the LTT amount for you.

Any changes to Scotland's Land and Buildings Transaction Tax (LBTT)?

LBTT holiday in Scotland also provided reduced tax rates but it was not extended beyond March 31, 2021.