Stamp duty rates from 1 October 2021 as the Stamp duty holiday finally ends

Stamp duty rates for residential property increased on 1 October 2021, as the final part of the stamp duty holiday ended on 30 September 2021 and the nil rate band returns to the lower rate of £125,000.

The temporarily reduced rates of Stamp Duty Land Tax (SDLT) applied to residential properties purchased in England and Wales between 08.07.2020 and 30.06.2021 and between 01.07.2021 and 30.09.2021 inclusive.

The rates from 01 October 2021 are as follows:

Residential Stamp Duty rates from 01 October 2021

Property or lease premium or transfer valueSDLT rate  
Up to £125,000Zero
The next £125,000 (the amount from £125,001 to £250,000)2%
The next £675,000 (the amount from £250,001 to £925,000)5%
The next £525,000 (the amount from £925,001 to £1.5 million)10%
The remaining amount (the amount above £1.5 million)12%

Stamp duty for first time buyers

Stamp Duty Land Tax for First Time Buyers was introduced at Budget 2017. From 22 November 2017, first time buyers purchasing residential property up to £300,000 as their only or main residence will not be liable for stamp duty. For purchases above this amount and up to £500,000, stamp duty will only be levied on the amount above £300,000 at 5%.

Residential sales above £500,000 by first time buyers will be levied at the usual rate.

Stamp duty for second homes including buy to let properties and overseas buyers

For Second Homes, including buy to let properties, there is an additional stamp duty surcharge of 3%.

Since 1 April 2021, overseas buyers are also charged an additional 2% premium on any residential property purchased.

Other considerations with Stamp Duty Land Tax

Different rules and Stamp Duty Land Tax rates apply for residential property in a number of circumstances, these include:

  • For corporate bodies
  • Linked purchases, which are multiple transfers or purchases between the same purchaser and vendor
  • where six or more residential properties are purchased in the same transaction
  • shared ownership properties
  • Purchases by companies or trusts

The 30-day capital gains tax requirement on the sale of residential property

Since April 2020, there is a legal obligation to report and pay any taxable gains on residential property to HMRC within 30 days of the sale completion.

Capital Gains Tax is potentially due on any gain resulting from the disposal of a property. Alongside the sale of a property, disposal also means the gifting of a property or when a property is transferred to someone else, aside from a spouse or civil partner.

Also, note that Capital Gains Tax is charged at different rates on residential property than compared to other assets

Further information on this can be found here in our article “Capital Gains Tax on Property – the 30 day rule for residential property”

How Alexander & Co can assist you

At Alexander & Co, all our tax accountants are fully certified, ensuring we provide expert advice to help reduce your tax liability as much as possible and keep you on the right side of HMRC.

We offer a complimentary initial consultation to review your personal circumstances and discuss the best route forward. This can be arranged face to face, or if you prefer via phone or video call.

Should you need advice on calculating your capital gains tax liability, filing your tax return or negotiating with HMRC our team is able to assist. We work with a wide range of clients across the UK, from individuals to incidental landlords, buy to let investors and larger investors and developers.

Contact Us

For further assistance, our expert tax team at Alexander & Co will be more than happy to assist you. Please contact us using the form on this page, call us on 0161 832 4841 or email info@alexander.co.uk.

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