Due to frenzied market activity in the last 12 months, driven partly by the stamp duty holiday, nearly two million UK houses are now in the higher stamp duty bracket in a victory for HMRC.
According to figures by property website Zoopla, 940,000 additional properties will now attract some level of stamp duty at five per cent, with an extra 130,000 commanding some level of stamp duty at 10 per cent.
The initial Stamp Duty Land Tax (SDLT) holiday, introduced in July 2020, finished last week (30 June), meaning house buyers will now have to pay stamp duty on purchases over £250,000.
The end of the tax holiday is unlikely to result in a cliff edge, Zoopla said, as buyer demand is still up 55 per cent above levels recorded in 2019. Supply also remains down, with the total stock of homes available to buy running 24 per cent below average levels last year.
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If you would like to discuss the recent changes in SDLT, get in touch with our Private Client Tax team on 01788 539000 or 0116 261 0061.
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