X
GO

09

Stamp duty holiday. Who will benefit?

posted on
Stamp duty holiday. Who will benefit?

 

 

Yesterday, 8th July 2020,  Chancellor Rishi Sunak announced a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland until next 31st March 2020.

According to the chancellor, this measure is said to save the average house buyer £4,500 with 9 out of 10 people buying their first home or moving to a new house this year expected to pay no stamp duty as a result.

Stamp duty land tax is a tax that anyone buying a property or land in England and Northern Ireland has to pay when the sale is completed.

 

So what has changed?

Prior to yesterday’s announcement the following stamp duty rates applied:

  • For home movers purchasing a new property as a main residence there was no stamp duty to pay on properties purchased for up to £125,000; the starting rate was 2% on the portion of a property between £125,001 and £250,000
  • First-time buyers did not pay any stamp duty for properties costing up to £300,000 and they had to pay 5% on any portion of the price between £300,001 and £500,000.

Now, with the stamp duty holiday, buyers won’t be paying stamp duty when purchasing a main home in England and Northern Ireland worth up to £500,000.

The starting stamp duty rate above £500,000 is now 5%:

Property/ lease premium/ transfer value

Rate

Up to £500,000

Zero

The next £425,000 (from £500,001 to £925,000)

5%

The next £575,000 (from £925,001 to £1.5 million)

10%

The remaining amount (above £1.5 million)

12%

 

The newly reduced rates of stamp duty will apply for residential properties purchased from 8 July 2020 until 31 March 2021 inclusive.

What hasn’t changed?

Second homes and additional properties will still attract a 3% surcharge, same as before.

Who will benefit?

The measure is intended kickstart the property market, which has suffered following the Covid-19 outbreak ,and a boost in this market is expected to have a knock-on effect on other parts of the economy.

Because the stamp duty tax is paid after a sale is completed, anyone currently in the process of buying a property will take advantage of the newly reduced rates.

This stamp duty cut can help some people move house more quickly than planned, since they are now able to save money on stamp duty and use this towards the house deposit. First-time buyers will benefit too, but mainly those in the South-East and London, as elsewhere they would typically not be spending more than £300,000 when buying their first home.

So great news that could potentially save you thousands of pounds if you are trying to get on the property ladder or thinking of moving home!

Regardless of your circumstances, our advisers are here to help so give us a call today to 01242 697821 to discuss your mortgage needs. 

CONTACT US 

Source: www.gov.uk; bbc.co.uk . Your home may be reposessed if you do not keep up repayments on your mortgage

| Categories: | Tags: | View Count: (537) | Return

WE will search the whole of market ACROSS thousands of mortgage deals to find you the right MORTGAGE.null

 

CONTACT US

 


TESTIMONIALS