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For tens of thousands of people, the push continues to complete their conveyancing transactions before 30 June 2021. This is the guillotine date for the current temporary increase in the Stamp Duty Land Tax (SDLT) nil rate band to £500,000. But don’t forget that SDLT will not revert fully to its pre-8 July 2020 rates until 1 October 2021.
Following the Budget in March, much was made of the Chancellor’s rabbit-out-of-the-hat extension to the SDLT rates he announced last summer. Much less has been made of the step provisions introduced to help mitigate a perceived cliff edge for the housing market on 30 June.
Stamp Duty after June 2021
Until 30 June, the current temporary rates of SDLT are:
- Up to £500,000: no stamp duty
- Next £425,000: 5%
- Next £575,000: 10%
- Balance above £1.5 million: 12%
From 1 July to 30 September 2021, that will change to:
- Up to £250,000: no stamp duty
- Next £675,000: 5%
- Next £575,000: 10%
- Balance above £1.5 million: 12%
Unless the Chancellor announces further changes, from 1 October 2021, rates will revert to pre-8 July 2020 levels:
- Up to £125,000: no stamp duty
- Next £125,000: 2%
- Next £675,000: 5%
- Next £575,000: 10%
- Balance above £1.5 million: 12%
Stamp Duty examples
This is how these changes will impact the current average house price in four towns and cities*:
Town/city |
Current average house price** |
SDLT 08/07/20-30/06/21 |
SDLT 01/07/21-30/09/21 |
SDLT 01/10/21 onwards |
| Swindon | £248,453 | £0 | £0 | £2,469 |
| Trowbridge | £258,048 | £0 | £402 | £2,902 |
| Bath | £532,418 | £1,620 | £14,120 | £16,620 |
| Bristol | £353,309 | £0 | £5,165 | £7,665 |
* Assumptions – the purchaser is a private individual(s), UK resident(s), non-first time buyer(s), and the purchase will not result in ownership of two or more properties.
** Figures courtesy of rightmove.
The desire to complete before 30 June is understandable. However, for purchasers unable to take advantage of the current rates, these figures illustrate that the step provisions applicable between July and September 2021, may still prove advantageous.