Stamp Duty Tax Holiday, Good news for Buy-to-let landlords, first time buyers and those who are planning to buy their next home.
On Wednesday 8th July 2020, the Chancellor announced a stamp duty holiday for property buyers in England and Northern Ireland, starting immediately, until March 31st 2021.
The stamp duty holiday means that if, for example, you are buying your next home you could save £7,500 on stamp duty for a property that worth £350,000.
If you are a self-employed or a Limited Company, it is time to get your paperwork ready!
So what is Stamp duty?
Buyers must pay stamp duty when buying a home or land worth £125,000 or more in England and Northern Ireland. You only pay the applicable rate on each slice above any threshold.
These are the rates:
Up to £125,000: 0%
On the portion from £125,001 to £250,000: 2%
On the portion from £250,001 to £925,000: 5%
And on the portion from £925,000 to £1.5m: 10%
Above £1.5m: 12%
First-time buyers are entitled to an exemption where they do not have to pay stamp duty on the first £300,000. Given that the property worth £500,000 or less.
If you are buying additional property, you pay extra 3% of stamp duty on the entire purchase price of the property on top of the regular stamp duty rates.
How will the stamp duty holiday work?
The new measure simply means that buyers will only start to pay stamp duty tax on property worth more than £500,000. This applies if you are buying you’re first home or moving to a new one.
These are the new holiday rates:
Up to £500,000: 0%
On the portion from £500,001 to £925,000: 5%
And on the portion from £925,001 to £1.5m: 10%
Above £1.5m: 12%
The 3% stamp duty surcharge for people buying additional properties still applies, on top of the new holiday rates.