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Our conveyancing solicitors' guide to stamp duty- October 2021: 

What is Stamp Duty? 

Stamp Duty, or Stamp Duty Land Tax, to give it the official title, is a tax that must be paid when you buy a property, or a piece of land over a certain value in England. 
 
The tax is a progressive one, which means that depending on the value of your property, you may pay a different rate of tax on different portions of the total property value, depending on how many thresholds it crosses into the following tax band.  

End of the stamp duty holiday- September 2021: 

There was a stamp duty holiday in place since June 2020, introduced by the government as a response to the pandemic. It saw a cut to stamp duty rates in order to allow people affected financially by the pandemic to still purchase property as planned. 
 
Until March 31 2021, this stamp duty holiday saw buyers saving up to £15,000 in stamp duty tax, as they did not have to pay any stamp duty on properties up to a value of £500,000, or the first £5000,000 of a property valued over this. 
 
This holiday period was then extended to June 30 2021, and then again until September 30 2021. In these months, buyers did not have to pay stamp duty on the first £250,000 of their property purchase. 
 
However, as of October 1 2021, the stamp duty holiday will come to a complete end, and rates will return to the level that they were at pre-Covid. This may be disappointing to many hoping to purchase property in the upcoming months, but could lead to a slowing down and stabilising of the housing market. 
 
In the year leading to July 2021, house prices saw an 8% increase, with the month of June seeing a huge 13.2% average increase in property prices. When these figures are considered, it could be said that the ending of the holiday may have little impact on the overall costs of your property purchase. 

Stamp Duty Land Tax changes from October 2021: 

With the end of the stamp duty holiday, and rates returning to their value before the pandemic, you may be wondering, ‘how much stamp duty duty will I pay after the stamp duty holiday?’. The new rates, as set by the government, are as follows. 
Property value: 
Stamp duty rate from 1 October 2021: 
£0-£125,000 
0% 
£125,001-£250,000 
2% 
£250,001-£925,000 
5% 
£925,001-£1,500,000 
10% 
£1,500,001+ 
12% 

What will stamp duty be in October 2021? 

If you are just learning about the ending of the stamp duty holiday, and the re-introduction of pre-covid tax rates, you might be wondering how much your stamp duty will be for your house purchase. If you are a previous home owner, looking to move house and sell your current property, the respective stamp duty based on the cost of your new property will be as follows: 
Property value: 
Stamp duty to be paid 1 October 2021: 
£150,000 
£500 
£200,000 
£1,500 
£300,000 
£5,000 
£400,000 
£10,000 
£500,000 
£15,000 

What are the stamp duty rates for first time buyers October 2021? 

The only stamp duty tax help out there that is remaining after October 2021, is the help that is in place first time buyers. 
 
First time buyers do not have to pay any stamp duty on property purchases up to the value of £300,000. This aspect of the policy is intended to allow more people to get on the property market and purchase their first property. If you are looking to buy your first property, our first time buyer solicitors are here to help. See more here. 
 
Below is a similar table indicating the stamp duty paid by first time buyers from October 2021: 
Property value: 
Stamp duty to be paid 1 October 2021: 
£150,000 
£0 
£200,000 
£0 
£300,000 
£0 
£400,000 
£5,000 
£500,000 
£10,000 

How can MG Legal help with my property purchase? 

Whether you are a first time buyer, moving house, or buying an additional property or holiday home, MG Legal’s specialist conveyancing solicitors are here to help. Our team have expert knowledge on the stamp duty tax, and how it works for different home buyers and property values. 
 
Our conveyancing solicitors offer clear, fixed-fee services on all of our conveyancing services, which can be seen outline here. 
 
Whether you’re looking for an online conveyancing solicitor to handle all of your conveyancing matters remotely from anywhere across the country, while keeping in regular contact, or a respected conveyancing solicitor in the Lancashire area with multiple office locations for your convenience, MG Legal’s specialist conveyancing solicitors are here to help. 
 
Simply contact our team online, here, give us a call, or email us at enquiries@mglegal.co.uk to hear back from a conveyancing solicitor within one working hour. 
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