chancellor last week announced a temporary holiday on stamp duty on the first
£500,000 of all property sales in England and Northern Ireland.
The tax threshold has been
temporarily raised until 31 March 2021 to boost the property market and help
buyers struggling because of the coronavirus crisis.
Partner, Alison Treble discusses the changes which came into effect on the 8th
is stamp duty?
Stamp duty is a tax paid by
people buying properties. It varies slightly across the UK, in England and
Northern Ireland buyers pay Stamp Duty Land Tax. In Scotland it is Land and
Buildings Transaction Tax, while in Wales buyers pay Land Transaction Tax.
The changes to stamp duty
announced last week will only benefit buyers in England and Northern Ireland.
How much stamp duty will I pay now?
Anyone completing on a
main residence costing up to £500,000 between 8 July and 31 March will not pay
any stamp duty, while more expensive properties will only be taxed on their
value above £500,000.
Property costing between
£500,001 and £925,000 will be taxed at 5%, after that £925,001 to £1.5 million
will be taxed at 10%, while property over £1.5 million will be taxed at 12%.
Stamp Duty cost
As these figuresabove show, house buyers could save as much as
£15,000, if they are buying a property of £500,000 or more.
Who is eligible?
Anyone who completes on a
property purchase between the 8th July and 31st March
2020 will benefit from the stamp duty holiday and won’t
pay any stamp duty provided the property is their main residence, it is located
in England or Northern Ireland and costs £500,000 or less.
Landlords and second home
buyers are also eligible for the stamp duty holiday but will still have to pay
the extra 3% of stamp duty they were charged under the previous rules.
Can I still benefit if I’ve already completed a purchase?
The holiday applies from
8 July, so anyone completing before that date or after the 31st
March will unfortunately be liable to pay stamp duty on land or property sold for £125,000 or more and first-time buyers will
pay stamp duty on properties over £300,000.
Stamp duty is payable
upon completion, so if you’ve exchanged contracts and are currently waiting for
completion you will be able to benefit from the holiday.
With saving of up to £15,000 on offer, there has never been a better time to move. So if you have found your dream home, first home or family home get in touch today with our Residential team on 01225 750000 or email Alison.firstname.lastname@example.org and let us help you get moving today.