The current Stamp Duty holiday will come to an end after June 2021, however, in order to smooth the transition back to original rates, it will then be tapered until the end of September. Buyers will therefore need to move quickly if they are to take advantage of this valuable incentive.

We spoke to our panel mortgage advisers, SRC Mortgage Solutions to help explain the new tapered down stamp duty rules:

What is the Stamp Duty holiday?

Stamp duty land tax is the tax paid on the purchase of a property in England and Northern Ireland. The Chancellor’s Stamp Duty holiday has seen the threshold for tax increase from £125,000 to £500,000.

The holiday was introduced to help boost the property market during the pandemic. The extended stamp duty holiday means that no tax will be paid on the first £500,000 of property purchases in England and Northern Ireland until 30 June 2021. This has meant a saving of up to £15,000 for homebuyers.

Landlords and second-home buyers have also been able to take advantage of the holiday although they have still needed to pay the 3% surcharge which applied under the old rules.

Read more about the current stamp duty holiday extension

A Shared Ownership home at Motion, E10 where you can buy a 2 bed apartment from only £110,000 for a 30%. Pay no stamp duty before Sep 21. 

When does the Stamp Duty holiday end?

The Stamp Duty holiday in its current format will end on 30 June 2021.

However, the chancellor has provided an extension with a reduced threshold of £250,000 until the end of September 2021.  After this date, the exemption will return to the old level of £125,000.

Stamp Duty Land Tax Rates


Pre 30 June 2021

Rates from 1 July to 30 September

Standard rates from 1 Oct 2021

Up to £125,000




£125,001 - £250,000




£500,001 - £925,000

5% (first £500,000 exempt)

5% (first £250,000 exempt)



How will the new changes affect first time buyers?

Although the deadline for Stamp Duty exemption is getting closer, don't worry if you haven’t had the chance to find your dream home yet. From 30 June until 30 September 2021, the Stamp Duty holiday is being tapered out, which will mean that first time buyers don’t have to pay any stamp duty on a residential property bought for up to £250,000.

The examples below illustrate how these changes will impact the tax payable for a first-time buyer.

Property Purchase Price of £250,000

Amount Payable

Pre 30 June


30 June to 30 September


1 October onwards



Property Purchase Price of £500,000

Amount Payable

Pre 30 June


30 June to 30 September


1 October onwards


When do you pay stamp duty on your home?

Stamp duty needs to be paid 14 days after completion eg. when you finished all transactions with your lender and you have the keys to your new home.

The Stamp duty return is normally filed by your solicitor or conveyancer on the day of completion. Any costs for this service will be added to their fees and they will also reclaim any relief you may be eligible for.

Read our conveyancing process guide for first time buyers

A Shared Ownership home at Colindale Gardens, NW9 where you can buy a 1 bed apartment from only £104,925 for a 30%. Pay no stamp duty before Sep 21. 

Stamp Duty and Shared Ownership Properties

If you are purchasing a Shared Ownership property you will have the option of paying Stamp Duty on the full market value of the property as if you were buying outright. 

As most share purchases are below the Stamp Duty threshold under the old rules many buyers chose to defer paying the tax until they bought further shares. The current Stamp Duty holiday means that for most buyers it now makes financial sense to opt to pay the stamp duty upfront, which in some cases will be zero. 

Even if there is tax to pay it still may be beneficial to opt to pay the tax upfront and utilise the allowance.

Shared Ownership buyers are strongly advised to seek guidance from their solicitor about the Stamp Duty payment options available to them.    

Find out why it's important to use a solicitor that has experience with Shared Ownership

What is Shared Ownership?

Shared Ownership is a part buy/part rent scheme that makes it possible for first time buyers to purchase a property that otherwise would not have been affordable. It is a government-backed scheme launched in 2006 for people who are unable to afford to buy a home at full market value.

Shared Ownership in London helps you get on the property ladder in an affordable way. You can usually buy an initial share of 25% to 75% of the value of a property, and you’ll need to take out a mortgage to pay for your share of the home’s purchase price.

You will then pay a subsidised rent on the share you don’t buy, and there will also be a monthly service charge to be paid on your home.



This article was contributed to by one of our panel mortgage advisers - SRC Mortgage Solutions.

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