Stamp duty land tax in Budget 2021

The Budget 2021 announced that Stamp Duty Land Tax (SDLT) temporary relief to be extended to 30 June 2021. Originally, this relief was going to end on 31 March 2021. The temporary relief amount reduces accordingly after 30 June 2021 and will return to the standard amount of £125,000 from 1 October 2021.

If you are buying a home in England or Northern Ireland you will be able to take advantage of this SDLT temporary relief.

  • £500,000 at 0% from 8 July 2020 to 30 June 2021.
  • £250,000 at 0% from 1 July 2021 to 30 September 2021
  • £125,000 at 0% from 1 October 2021.

The stamp duty Land Tax in Budget 2021 does not apply to properties in Wales and Scotland. These countries have their own separate property tax system.

Below is the Stamp Duty Land Tax at a glance.

Stamp Duty Land Tax Temporary relief for the period from 8 July 2020 to 30 June 2021

This temporary relief applies to first time buyers.

ConsiderationSDLT Percentage
Property purchase cost up to £500,0000%
£500,001 to £925,0005%
£925,001 to £1,500,00010%
above £1,500,00012%
Source: GOV.UK

For example, if you buy a house for £1,550,000 in Mayfair, London in May 2021. Your Stamp duty Land Tax will be calculated as follows:

  • £500,000 @ 0% = £0
  • £425,000 @ 5% = £21,250
  • £575,000 @ 10% = £57,500
  • £50,000 @ 12% = £6,000
  • Total Stamp Duty payable is £84,750.

Stamp Duty Land Tax Temporary relief for the period from 1 July 2021 to 30 September 2021

This temporary relief applies to first time buyers.

CONSIDERATIONSDLT PERCENTAGE
Property purchase cost up to £250,0000%
£250,001 to £925,0005%
£925,001 to £1,500,00010%
above £1,500,00012%

For example, if you buy a house for £1,550,000 in Mayfair, London in August 2021. Your Stamp duty Land Tax will be calculated as follows:

  • £250,000 @ 0% = £0
  • £675,000 @ 5% = £33,750
  • £575,000 @ 10% = £57,500
  • £50,000 @ 12% = £6,000
  • Total Stamp Duty payable is £97,250.

Stamp Duty Land Tax standard rate from 1 October 2021

This temporary relief applies to first time buyers.

CONSIDERATIONSDLT PERCENTAGE
Property purchase cost up to £125,0000%
£125,001 to £250,0002%
The next £250,001 to £925,0005%
£925,001 to £1,500,00010%
above £1,500,00012%

For example, if you buy a house for £1,550,000 in Mayfair, London in November 2021. Your Stamp duty Land Tax will be calculated as follows:

  • £125,000 @ 0% = £0
  • £125,000 @ 2% = £2,500
  • £675,000 @ 5% = £33,750
  • £575,000 @ 10% = £57,500
  • £50,000 @ 12% = £6,000
  • Total Stamp Duty payable is £99,750

Go compare

Property valueStamp duty rates to 30 Jun 2021Stamp duty rates to 30 Sep 2021Standard stamp duty rates from 1 Oct 2021
A house cost £1,550,000£84,750£97,250£99,750
Saving£15,000£2,500Standard rate

From the above comparison, buy a property with the value of £1,550,000 before 30 June 2021 will save you a stamp duty land tax of £15,000 compared to buying it in October 2021. Your saving is reduced to £2,500 if you buy a property of the same value between 1 July 2021 to 30 September 2021.

Filing with HMRC

You must send your stamp duty land tax return to HMRC if your property is cost more than £40,000 even though you have no stamp duty to pay.

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