The Government has announced a Stamp Duty Holiday until March 2021
The chancellor has 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 20201 in an effort to boost the property market and help those buyers struggling because of the coronavirus pandemic.
The changes came into immediate effect on 8 July following his announcement.
What has changed?
Anyone completing on a main residence costing up to £500,000 between now and 31 March will not pay any stamp duty and more expensive properties, will only be taxed on their value above that amount. The table below sets out the new temporary thresholds:-
Up to £500,0000 – zero
£925,001 – £1.5m – 10%
Anything above £1.5m- 12%
The even bigger new is that this also applies to those buying a second or investment property and the rates will be:-
Up to £500,000 – 3%
£500,001 – £925,000 – 8%
£925,000 – £1.5m – 13%
Anything above £1.5m – 15%
The average stamp duty bill will fall by approximately £4,500 with some buyers saving as much as £15,000 if they are buying a property of £500,000 or more
Can I benefit if I’ve already completed a purchase?
Sadly not. The holiday applies from 8 July, which means anyone completing a property purchase before that date will have to pay the full normal stamp duty. However, stamp duty is payable upon completion, so if you’ve exchanged Contracts and are current waiting for completion you will still be able to benefit from the change.
Of course if you have any questions, we would be more than happy to assist so please do feel free to contact one of our expert Property Lawyers at either of our offices.
This article is for informational purposes only and does not constitute legal advice. You should seek advice before acting on any information provided above.