When does the Stamp Duty holiday end? The amount YOU will have to pay on two key dates

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The Stamp Duty holiday was introduced by the Government in July 2020, as a form of tax relief in a bid to improve the state of the housing market amidst the COVID-19 pandemic. With the phased return to pre-holiday rates in full swing, here’s what you can expect if you’re looking to move in 2021.

When does the Stamp Duty holiday end?

Having been extended once already from March to June of this year, the Government has not announced any plans to extend the holiday period further.

Relief on Stamp Duty is being reduced and is expected to return to full pre-pandemic rates starting at £125,000 by October 1 this year.

The key dates for your diary are September 30 and October 1, 2021.

How much will you have to pay on these dates?

There are still savings to be made if you complete your house purchase by the end of September this year.

Stamp Duty relief still applies to properties up to the price of £250,000 if the sale is completed by September 30.

The current phase of the return to full rates means that you will pay a reduced rate of Stamp Duty on purchased property worth £250,001 or over until September 30.

  • Five percent is payable for properties worth £250,001 to £925,000
  • 10 percent is owed on properties worth between £925,0001 to £1.5 million
  • Anything above £1.5 million means you must pay 12 percent in Stamp Duty costs.

By October 1, you can expect to be paying full rates for Stamp Duty when purchasing a new home.

Mortgage experts Really Moving recommend an allowance of four months to complete a housing transaction so buyers should be prepared to pay full tax if you aren’t already in the motion of moving.

Does this apply to first-time buyers?

Having helped many people get onto the property ladder, the end of the relief period has caused something of a buying frenzy.

If you’ve missed the Stamp Duty holiday period and are still looking to buy a home for the first time, rates still apply for most bands of property value.

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From October 1, Stamp Duty rates for first-time buyers will be:

  • Free on a property purchased for up to £300,000
  • Five percent on a home worth between £300,001 to £925,001
  • 10 percent on a property worth between £925,001 and £1.5 million
  • 12 percent on anything worth over £1.5 million

How will the end of Stamp Duty affect my mortgage?

Mortgage lenders have tightened their lending budgets so it is important to be realistic about lending estimates affordability.

The high demand in property sales and purchases has caused an increase in demand for mortgage services to allow time for application approvals.

Missed the Stamp Duty holiday deadline?

In their spring budget, the UK Government announced a new five percent deposit mortgage scheme which guarantees first-time buyers can borrow up to 95 percent of the purchase price of the property.

This can help if you’re wanting to get onto the property ladder as it requires a smaller deposit sum and gets things moving a bit quicker.

Whilst this doesn’t change Stamp Duty rates, it is an alternative way to help you get a taste of the property market for the first time.

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