Originally announced by the UK Chancellor Rishi Sunak on 8th July 2020, 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.
This change began on 8th July 2020 and ends on 31st March 2021, meaning that buyers now have less than three months left to benefit from the savings. On 1 April 2021 the reduced rates will revert to the rates that were in place prior to 8th July 2020.
According to Mr Sunak, the cut will lead to the average stamp duty bill for homeowners falling by a total of £4,500, however for homeowners making the most of the full £500,000 entitlement, the saving could be as much as £15,000.
There have been concerns raised about a ‘cliff-edge’ when the holiday ends on 31st March and a 110k strong petition has been presented to parliament to force a debate about a six-month extension. No date has been set for this yet, however, if it passes, it will mean that the holiday would be extended to the end of September.
The tables below outline the temporary stamp duty rates for properties purchased during the period of the holiday.
Residential rates for homeowners
Higher rates for additional properties
*Source: gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
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.