Stamp Duty 2021 – what will I pay?

Stamp Duty is based on the purchase price of land + property + fixtures included in a transaction. This typically includes fitted kitchen units, cupboards and sinks, Agas and wall mounted ovens, fitted bathroom sanitary ware, central heating systems, intruder alarm systems, and plants, shrubs and trees where these are growing in the soil.

Any chattels included in the transaction can be separated out to reduce the taxable price on which SDLT is payable. Broadly speaking chattels are moveable objects. They typically include carpets (fitted or otherwise), plant and machinery, curtains and blinds, free standing furniture, kitchen white goods (unless fully integrated), electric and gas fires (provided that they can be disconnected without causing damage), light shades and fittings (unless recessed), plants in pots, and fast growing annual arable crops. 

You should take specialist advice, as HMRC may challenge any reduction in the SDLT payable.

Stamp Duty Land Tax applies at the rates below when buying a property as your main residence (the rates are different for second homes and commercial properties, see bottom of page). The effective date of the transaction is usually the completion date. 

8 July 2020 to 30 June 2021

Stamp Duty is paid when you buy a property for £500,001 or above

5% on the portion from £500,001 to £925,000

10% on the portion from £925,001 to £1.5 million

12% on the portion above £1.5 million

1 July 2021 to 30 Sep 2021

Stamp Duty is paid when you buy a property for £250,001 or above

NEW – 5% for the portion from £250,001 to £500,000 

This means that if you buy at £500,000 or above, you will be paying an extra ≈ £12,500 from 1st July 2021 onwards (this is the worst case scenario – if you buy for less than £500,000 the extra payment will be less than £12,500).

Stays at 5% for the portion from £500,001 to £925,000

Stays at 10% for the portion from £925,001 to £1.5 million

Stays at 12% for the portion above £1.5 million

From 1 October 2021

Stamp Duty is paid when you buy a property for £125,001 or above

NEW – 2% for the portion from £125,001 to £250,000

This means that if you buy at £250,000 or above, you will be paying an extra ≈ £2,500 from 1st Oct 2021 onwards (this is the worst case scenario – if you buy for less than £250,000 the extra payment will be less than £2,500).

Stays at 5% for the portion from £250,001 to £500,000

Stays at 5% for the portion from £500,001 to £925,000

Stays at 10% for the portion from £925,001 to £1.5 million

Stays at 12% for the portion above £1.5 million

Commercial or Mixed Use Property

Stamp Duty is paid when you buy a commercial property for £150,001 or above

There is no Stamp Duty relief for commercial property and the rates payable have not changed in 2021.

2% on the portion from £150,001 to £250,000

5% on the portion above £250,000

Second Homes

If your purchase price is more than £40,000 and the purchase results in you owning more than one residential property, you’ll usually have to pay 3% on top of normal SDLT rates. The 3% loading applies to the entire purchase price of the property from £0 upwards. This loading doesn’t apply to caravans, mobile homes or houseboats.

If the property you’re buying is replacing your main residence, and you have not sold your main residence on the day you complete your new purchase, you’ll have to pay the higher rates, but you will be able to apply for a refund if you go on to sell your previous main home within 36 months.

Further Information

The government website Stamp Duty Land Tax pages should have all the information you need.

Please note that I am not a lawyer or legal advisor, and that you should only take advice from an appropriately qualified professional.