Originally announced by the UK Chancellor Rishi Sunak on 8th July 2020, and extended to the end of June 2021, the stamp duty holiday is a temporary increase in the residential stamp duty threshold from £125,000 to £500,000 for homeowners and a flat rate of 3% on the first £500,000 for second homes.

However, as of 1^st July, the stamp duty holiday is changing, and this £500,000 threshold will reduce to £250,000 for three months before reverting to the previous system.

It has been widely reported that the stamp duty holiday will end on 30^th June, however, this is not the case and homeowners will still benefit from some significant savings of around £2,500.

The tables below outline the residential stamp duty rates from 1^st July and then 1^st October.

Residential Stamp Duty Rates From 1^st July 2021

Residential Stamp Duty Rates From 1^st October 2021

For people buying a second home, there is also a change. This means that investors will be saving 2% of the fee for the £125,001 – £250,000 bracket totaling £2,500: the same as that for residential homeowners.

Second Home Stamp Duty Rates From 1^st July 2021

Second Home Stamp Duty Rates From 1^st October 2021

We hope that you found this helpful. If you are purchasing a property and have any questions, then we will be more than happy to help where we can. You can either call us on 01322 553282 or contact us online.