Stamp duty for first time buyers has been abolished for most purchasers.
Stamp duty for buy to let property has increased substantially from April 2016 following the introduction of a 3 percent surcharge.
Stamp duty for second homes has also increased as a result of the 3 percent surcharge. Mobile homes, caravans and houseboats are exempt.
Stamp duty refunds are available for home movers replacing their main residence. The original home must be sold within 3 years.
The stamp duty holiday in England & Northern Ireland ended on 30th June 2021.
The stamp duty holiday came into effect on 8th July 2020 and ended on 30th June 2021. The stamp duty holiday was originally due to end on 31st March 2021.
Following the end of the stamp duty holiday, a transition period was implemented between 1st July and 30th September 2021. During the transition period the initial zero rate threshold was reduced from £500,000 to £250,000. From 1st October 2021 stamp duty rates and thresholds have reverted to levels in place before the start of the stamp duty holiday. This means the initial zero rate threshold has returned to £125,000.
The Chancellor Rishi Sunak announced the introduction of the stamp duty holiday in his 2020 summer statement as part of the economic response to the Covid-19 pandemic. The changes to stamp duty were designed to support the housing sector through the crisis.
The initial threshold for anyone buying a home was increased from £125,000 to £500,000 until 30th June 2021. To ensure a smooth transition back to normal rates, the initial stamp duty threshold was reduced to £250,000 from July through to end of September 2021.
Additional property transactions also benefited from the stamp duty holiday with just the lowest rate of 3% being applied to purchases within the higher initial threshold.
The stamp duty holiday applied to house purchases in England and Northern Ireland, a separate LBTT holiday operated in Scotland and a LTT holiday is was introduced in Wales.
The stamp duty holiday ended on 30th June with further stamp duty relief available until 30th September 2021.
From 1st October 2021 onwards the stamp duty rates and thresholds reverted back to previous levels.
The freehold residential stamp duty rates in England and Northern Ireland are shown in the table below. The rates reflect the reinstatement of the standard SDLT thresholds from 1st October 2021 and subsequent changes to the initial zero rate threshold on 23rd September 2022.
|Tax Band||Normal Rate||Additional Property|
|less than £250k||0%||3%*|
|£250k to £925k||5%||8%|
|£925k to £1.5m||10%||13%|
|rest over £1.5m||12%||15%|
|* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £250k the SDLT rate will be 3% on full purchase price.|
Stamp duty calculations with new stamp duty thresholds. One click SDLT Calculations!
Following Changes in 2018, Land Transaction Tax (LTT) has replaced Stamp Duty in Wales.