Stamp duty holiday extension calculator: How much tax would you pay and what could you save?
The stamp duty holiday deadline will be extended from 31 March to 30 June 2021, the Chancellor said today in his Budget.
Rishi Sunak said that no stamp duty will continue to be paid below the first £500,000 of a property purchase until the end of June – saving buyers a maximum of £15,000 compared to normal tax rates.
And in addition to this widely-trailed move, there will also be no stamp duty charged on the first £250,000 of a property purchase until the end of September – saving buyers a maximum of £5,000 compared to normal tax rates.
After that the standard nil rate band for stamp duty will revert to its pre-holiday £125,000 level.
Our calculator shows how much tax you would pay to move home until the 30 June 2021.
| Purchase price | Standard rates | Holiday rates |
|---|---|---|
| £100,000 | £0 | £0 |
| £200,000 | £1,500 | £0 |
| £300,000 | £5,000 | £0 |
| £400,000 | £10,000 | £0 |
| £500,000 | £15,000 | £0 |
| £600,000 | £20,000 | £5,000 |
| £700,000 | £25,000 | £10,000 |
| £800,000 | £30,000 | £15,000 |
| £900,000 | £35,000 | £20,000 |
| £1,000,000 | £43,750 | £28,750 |
| £1,100,000 | £53,750 | £38,750 |
| £1,200,000 | £63,750 | £48,750 |
| £1,300,000 | £73,750 | £58,750 |
| £1,400,000 | £83,750 | £68,750 |
| £1,500,000 | £93,750 | £78,750 |
| Stamp duty rates with 0 per cent charged up to £500,000 apply to house purchases until 30 June 2021. After this the zero rate will run to £250,000 until 30 September 2021. | ||
Stamp duty land tax applies in England and Northern Ireland and the cut will affect both nations. Wales and Scotland have different charges.
The greatest benefit of the stamp duty holiday extension is to those who would have faced the biggest tax bills on homes costing £500,000 or more – they will save the full £15,000.
If they complete on a purchase after 30 June but before the end of September, they will save £5,000.
How do the new and old rates of stamp duty compare and how much could you save if buying a home? We crunch the numbers below.
Stamp duty on your own home
| Property purchase price | Stamp duty rate |
|---|---|
| £0 to £500,000 | 0% |
| £501,000 to £925,000 | 5% |
| £925,001 to £1.5million | 10% |
| £1.5million+ | 12% |
| For purchases until 30 June 2021 | |
Stamp duty on buy-to-let and second homes
| Property purchase price | Stamp duty rate |
|---|---|
| £0 to £500,000 | 3% |
| £501,000 to £925,000 | 8% |
| £925,001 to £1.5million | 13% |
| £1.5million+ | 15% |
| For purchases until 30 June 2021 | |
Stamp duty rates as the holiday tapers
| Band | Own home stamp duty rates | Buy-to-let and second homes |
|---|---|---|
| £0 – £125k | 0% | 3% |
| £125,001 – £250k | 0% | 3% |
| £250,001 – £925k | 5% | 8% |
| £925,001 – £1.5m | 10% | 13% |
| £1.5m + | 12% | 15% |
| * No stamp duty is paid on property transactions costing less than £40,000 as these are considered low value and not reported to HMRC | ||
Stamp duty rates when the holiday ends
| Band | Own home stamp duty rates | Buy-to-let and second homes |
|---|---|---|
| £0 – £125k | 0% | 3% |
| £125,001 – £250k | 2% | 5% |
| £250,001 – £925k | 5% | 8% |
| £925,001 – £1.5m | 10% | 13% |
| £1.5m + | 12% | 15% |
| * No stamp duty is paid on property transactions costing less than £40,000 as these are considered low value and not reported to HMRC | ||
Are buyers saving money? House price rises create a false economy
House prices have risen since the stamp duty holiday was announced last summer
The average house price has jumped by £14,655 since the stamp duty holiday was introduced in early July 2020, according to Nationwide Building Society’s index.
The most recent report to February 2021 was released yesterday and showed the average UK house price at £231,068.
That compares to £216,403 at the end of June 2020, just before the stamp duty break was announced and came into immediate effect.
This means that the average house price has risen almost as much as the maximum £15,000 tax saving from the stamp duty holiday, as the property market has rebounded from its early lockdown freeze much stronger than expected.
Compounding suggestions of a false economy created by a time limited tax cut is the fact that a buyer of the average £231,068 home is only saving £2,121 from the stamp duty holiday.
To make the maximum £15,000 saving, buyers must purchase a home costing £500,000 or more.
