Has the Stamp Duty Holiday Finished? 30 Sep 2021
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is paid on residential property purchases in England and Northern Ireland. Although discounts are available (e.g. if it is your first home), Stamp Duty is paid in increasing portions based on the property value.
Stamp Duty is known as Land and Buildings Transaction Tax in Scotland, while in Wales buyers pay what is known as Land Transaction Tax.
What is the Stamp Duty Holiday?
The chancellor announced a temporary holiday on stamp duty on 8th July 2020, reliving those of SDLT when purchasing property up to the value of £500,000. The holiday was initially due to last until 31st March 2021 but was later extended until the end of September 2021 in a bid to help buyers who were financially hit the Covid.
How much will stamp duty cost?
| Property Value | SDLT Rate |
|---|---|
| Up to £125,000 | 0 |
| £125,001 – £250,000 | 2% |
| £250,001 – £925,000 | 5% |
| £925,001 – £1.5 million | 10% |
| Above £1.5 million | 12% |
How will the Stamp Duty Holiday Affect Me?
Almost nine out of ten buyers pay stamp duty, costing some up to £15,000. With the average detached property in Cockermouth costings £311,507, West Cumbrian purchasers can expect to pay roughly £5,575.33.
Average Detached Property in Cockermouth
| Property Price | Tax Band | % | Taxable Sum | Tax Due |
|---|---|---|---|---|
| £311,507* | £0 – 125,000 | 0 | £125,000 | £0 |
| £125,001 – £250,000 | 2% | £125,000 | £2,500 | |
| £250,001 – £925k | 5% | £61,507 | £3,075.35 | |
| Total SDLT: | £5,575.35 |
Average Semi-Detached Property in Cockermouth
| Tax Band | % | Taxable Sum | Tax Due | |
|---|---|---|---|---|
| Property Price | £0 – 125,000 | 0 | £125,000 | £0 |
| £216,063* | £125,001 – £250,000 | 2 | £91,063 | £1,821.26 |
| Total SDLT: | £1,821.26 |
Average Terraced Property in Cockermouth
| Tax Band | Tax Band | % | Taxable Sum | Tax Due |
|---|---|---|---|---|
| Property Price | £0 – 125,000 | 0 | £125,000 | £0 |
| £184,917* | £125,001 – £250,000 | 2 | £59,917 | £1,198.34 |
| Total SDLT: | £1,198.34 |
Figuring out your finances before you get the moving wheels in motion can save you a lot of stress. We can offer you a free financial appointment to assist you with getting your sums in order and set your property journey off on the right foot. Fill out the contact form below for further information.
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For more information, visit www.gov.uk/stamp-duty-land-tax.
Average property prices as listed by Rightmove.
