Stamp Duty Updates: Further Changes Set for June and Beyond

Here at Britannia Fleet Liverpool, we understand that, although much of the outside world is opening up again, things are far from “back to normal.” Unfortunately for buyers, sellers and movers, these are still quite complicated times to be living through. With new legislation and guidelines coming into effect on a regular basis as the situation with COVID-19 rumbles on – we remain totally committed to guiding our customers through these complex times.

Recently, there were yet further changes to the UK laws on stamp duty holiday. As usual, we’re here to simplify things for you, so you can gauge if the new changes will affect you.


What is Stamp Duty?

Stamp Duty, also known as Stamp Duty Land Tax, must be paid if you buy a property or piece of land over a certain price in England and Northern Ireland.

You have to pay Stamp Duty in England and Northern Ireland for:

  • Stamp duty thresholds
  • Purchasing a freehold property
  • Purchasing a new or existing leasehold
  • Purchasing a property through a shared ownership scheme
  • Purchasing land or property in exchange for payment, including taking on a mortgage or buying a share in a house


Talking figures


As you can see here, stamp duty land tax receipts in the United Kingdom amounted to approximately 8.66 billion British pounds in 2020/21, compared with 11.60 billion pounds in the previous year. During the provided time period, 2017/18 was the year with the highest amount of stamp duty tax receipts, at approximately 12.91 billion British pounds. 


Changes on June 30

As of this date, Stamp Duty thresholds will change as the UK begins to come out of lockdown. The threshold from July 1 to September 30, 2021, will be £250,000 – this means you’ll not have to pay Stamp Duty on residential properties costing up to £250,000. Properties worth £250,000 or more will gain a tax.

For non-residential land and properties, Stamp Duty will need to be paid for anything costing £150,000 or more.


Changes from October 1

From October 1, you’ll have to pay Stamp Duty on any properties you have that cost more than £125,000 (residential) and £150,000 (non-residential land and properties).

It’s important to remember though that first time buyer rules are different.

First-time buyers will still continue to get a discount from Stamp Duty as of July 1, 2021. This means you’ll pay less or no tax at all if both the following apply:

  • You, and anyone else you’re buying with, are first-time buyers
  • The purchase price of your property is £500,000 or less

It’s also worth bearing in mind that you’ll be eligible for this discount if you bought your first home before July 8, 2020.


Temporary Pauses

A brief pause was put on property tax during the coronavirus pandemic, but now this is set to change again. Stamp Duty had previously been paid on properties worth more than £500,000, but last July Chancellor Rishi Sunak unveiled a suspension in order to keep the property market stable during lockdown. That suspension is now due to run out on June 30, unless Mr Sunak reveals further extensions to the tax-free holiday.


So what does this mean going forward?

As it stands, thousands of people throughout the UK have signed an online petition for stamp duty to apply when contracts are exchanged, rather than at the point of completion. This lessens the chance of last minute complications that may leave you out of pocket, through no fault of your own. So far more than 12,600 people have signed the petition on the government website. There are also those who want to see the stamp duty break abolished completely. The think tank Bright Blue argues that scrapping the stamp duty holiday would stimulate greater activity in the housing market. It wants to see it gone along with council tax, and both replaced with an annual property tax instead.


But as long as it’s here – remember that how much you pay largely depends on if the land is residential or commercial. If your property is a residential one, you’ll pay different rates depending on if you’re:

  • A first time buyer
  • You’re not a UK resident
  • You already own property and you’re buying an extra premises


To work out how much you will likely have to pay, if anything, in regards to Stamp Duty – make a visit to the official Stamp Duty Land Tax calculator today.

If you’d like more guidance on this tax then a member of our friendly team at Britannia Fleet will be happy to point you in the direction of more detailed resources and assistance, so feel free to contact us.

To help with your house move contact our team for your quote today on 0151 482 0432 or complete our quick quote form online.