The Change to Stamp Duty in the UK

The Change to Stamp Duty in the UK

Benjamin Thompson Kirk

THE CHANGE TO STAMP DUTY IN THE UK

The UK Government announced a stamp duty holiday in July 2020 to help stabilize the housing market in the wake of the pandemic.

This meant that a buyer could purchase a property up to the value of £500,000 before incurring taxes, which represented a saving of up to £15,000.

Benjamin Thompson Kirk

Scaling Back Of The Tax Break July 2021 saw the scaling back of this tax break, with stamp duty once more becoming payable on property purchases with a value of more than £250,000.

In October 2021 the tax break came to an end entirely in the UK, with stamp duty payable – as it was pre-pandemic – on purchases over £125,000.

In Scotland and Wales the stamp duty holiday had already ended prior to this, in March and June 2021 respectively.

Effect On Demand The tapered stamp duty break was key to driving up demand for houses in the first nine months of 2021. Experts suggest that the dramatic drop in transactions following the end of the tax holiday will likely level out within a short space of time.

For more information about stamp duty and other costs associated with buying a property, visit the blog of Benjamin Thompson Kirk.