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Stamp duty is the property transaction tax, it is tax due to be paid on any property which is purchased at more than £125,000.
Our team looks at some of the recent news surround stamp duty and information you will need to consider when looking for your home if you’re thinking of moving between now and 1st October 2021.
The stamp duty holiday was introduced in England and Northern Ireland in June 2020 to support the property market during the Covid-19 pandemic, and help ensure buyers could make purchases.
Here is everything you need to know about how it is changing, and when it will end for good.
From 1 July, people buying homes in England and Northern Ireland will have to pay stamp duty on all property over £250,000.
Since last June buyers have been exempt from paying stamp duty on homes up to £500,000. The normal nil rate band is £125,000.
This is how much stamp duty you will have to pay between now and 30 September:
£0 – £250,000 = 0 per cent£250,001 – £925,000 = 5 per cent£925,001 – £1,500,000 = 10 per cent£1,500,000 and over = 12 per cent.
From 1 October it will change again, reverting back to pre-pandemic rates:
£0 – £125,000 = 0 per cent£125,001 – £250,000 = 2 per cent£250,001 – £925,000 = 5 per cent£925,000 – £1,500,000 = 10 per cent£1,500,000 and over = 12 per cent.
Rates for people buying second homes are slightly higher. In normal times, buyers do not pay any stamp duty on the value of a property up to £125,000.
You then pay a lump sum equivalent to two per cent of the value of the property up to £250,000 and five per cent on the next £675,000.
The rules are different for first-time buyers, who are exempt from stamp duty for properties up to £300,000, and then must pay five per cent on the portion from £300,001 to £500,000.
If you are a first-time buyer purchasing a property that costs more than £500,000 you follow the same rules as other buyers.
Rates are different depending on whether the property is residential, a second home or buy-to-let.
Click here to find out how much tax you will pay using the government stamp duty tax calculator.
If you’re looking to find out more information on stamp duty or any of our services, get in touch with one of our estate agents, who would be happy to provide you with more information at firstname.lastname@example.org.
About Rea Estates:
At Rea Estates, we provide award-winning services to a wide range of clients and we are highly specialised in all aspects of sales, lettings and management.
We sell, let, and manage property across the greater Belfast area and North Down. We also provide comprehensive property investment services, including property sourcing and property procurement, refurbishment and project management, and tenant sourcing and tenancy management. Our property services are entirely bespoke based entirely on the requirements of the client.