Published: 21/09/2021 By Musgrove & Co
Stamp duty: how much do I have to pay?
The stamp duty holiday which was introduced in July 2020 is due to come to an end at the end of this month. The holiday was introduced to help home buyers, whose finances were affected by Covid-19.
Until June 2021, homebuyers didn't have to pay stamp duty on the first £500,000 of a purchase price. The holiday was later extended from July 1st to September 30th, meaning buyers are saving on the first £250,000.
- £0-£250,000 = 0%
- £250,001-£925,000 = 5%
- £925,001-£1,500,000 = 10%
- £1,500,000+ = 12%
From 1 October 2021, rates will return to pre-Covid levels. That means the price point to start paying stamp duty will be £125,001:
- £0-£125,000 = 0%
- £125,001-£250,000 = 2%
- £250,001-£925,000 = 5%
- £925,001-£1,500,000 = 10%
- £1,500,001+ = 12%
The stamp duty holiday is one the main causes of the rise in house prices by 13.2% the biggest surge in prices since 2004.
There is still assistance from the government for first-time buyers. They do not have to pay stamp duty on properties of up to £300,000 and mortgages are being accepted with 5% deposits.
Local mortgage advice.
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