Residential Property in England – Stamp Duty Land Tax changes from 1 October 2021

From the 1st October 2021 stamp duty rates are due to return to the levels which were in place prior to 8th July 2020.

You can check the rates using the HMRC website https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

The standard rates from 1 October 2021 will apply as follows:

Property or lease premium or transfer value SDLT rate

Up to £125,000 Zero

The next £125,000 (the portion from £125,001 to £250,000) 2%

The next £675,000 (the portion from £250,001 to £925,000) 5%

The next £575,000 (the portion from £925,001 to £1.5 million) 10%

The remaining amount (the portion above £1.5 million) 12%

It should also be noted, depending on your circumstances and specific transactional details, that the following may apply in addition to the standard rates:

· Higher rates for additional properties – you’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.

· Rates if you’re not a UK resident – if you’re not present in the UK for at least 183 days (6 months) during the 12 months before your purchase you are ‘not a UK resident’ for the purposes of SDLT. You’ll usually pay a 2% surcharge if you’re buying a residential property in England which completes on or after 1 April 2021.

· Special rates – there are different SDLT rules and rate calculations for corporate bodies, people buying 6 or more residential properties in one transaction, shared ownership properties, linked or multiple purchases, purchases that mean you own more than one property and companies and trusts buying residential property.

Find out what more we can do in residential English real estate by contacting one of our team.