Recent changes to property taxes

Property

Keeping on top of property taxes over the last year has been difficult and further changes have been made from this month. 

 

Last year, Rishi Sunak announced a stamp duty land tax holiday for properties under £500,000 or for the first £500,000 of the property price. This was extended by three-months in March 2021 until 30 June 2021.

 

 

The stamp duty land tax holiday taper is now in place before the old regime takes over in the autumn. From 1 July 2020, buyers will now pay stamp duty land tax for residential house purchases over £250,000.

 

Buyers who completed their purchases before 30 June 2021 avoided having to pay stamp duty land tax on the first £500,000 of the property price. Most buyers who missed that extended deadline will now pay stamp duty land tax for residential house purchases above £250,000 for transactions completed between 1 July 2021 and 30 September 2021 inclusively.

 

Above this threshold, a 5% stamp duty land tax rate applies on the portion of the property price between £250,000 and £925,000.

 

Those who completed their purchases before the end of June were able to save up to £15,000 on their stamp duty land tax bills, while buyers who complete on or before 30 September 2021 can only save up to £2,500.

 

For first-time buyers from 1 July 2021

First-time buyers in England and Northern Ireland also benefited from the stamp duty holiday. They will now have to pay tax on properties worth more than £300,000. For properties between £300,000 and £500,000 a 5% tax rate applies.

 

For buy-to-let landlords from 1 July 2021

For buyers of additional residential properties in England and Northern Ireland that are not their main residence, the 3% surcharge kicks in on top of stamp duty rates above £250,000.

 

 

Blog post uploaded 14 July 2021