It is not the holiday any of us expected to have this summer but chancellor, Rishi Sunak, announced a stamp duty holiday on 8 July for properties in England and Northern Ireland.
It is hoped that the changes, which will be in place until 31 March 2021 will provide a boost to the property market and make it easier for buyers to purchase a home following the coronavirus crisis.
What is stamp duty?
In England and Northern Ireland, Stamp Duty Land Tax (SDLT) is paid when you buy a property or land over a certain price.
The rate at which the tax is paid depends on the price and type of the property.
The previous threshold was £125,000 for residential properties and £150,000 for non-residential land and properties.
What is the stamp duty holiday?
The government has temporarily increased the stamp duty threshold to £500,000.
This means if you purchase a property worth up to £500,000 between 8 July 2020 and 31 March 2021, you will not pay stamp duty.
How much will I save?
The stamp duty holiday could save buyers up to £15,000, if they purchase a property above £500,000.
- £200,000 property value – £1500 saving
- £300,000 property value – £5000 saving
- £400,000 property value – £10,000 saving
- £500,000 property value – £15,000 saving
Source: HM Revenue and Customs
Will the stamp duty holiday apply to second homes?
If you are buying a second property or a property on a buy-to-let basis, you will still benefit from the increased £500,000 threshold. However, you will have to pay the 3% Stamp Duty surcharge which applies to second homes unless the new home you are buying will be your main residence.
View our current properties
Related Articles
Get the Look: Village Mews
18th January 2021 / Advice & GuidanceHere's how you can replicate the style of our stunning Village Mews show home.
What You Need To Know About The Help to Buy Changes
24th November 2020 / Advice & GuidanceHelp to Buy is a government scheme which helps first-time buyers and home movers to purchase a new build property worth up to £600,000 with just a 5% deposit - but it's changing. Find out what the Help to Buy changes mean for first time buyers and home movers.
Help to Buy is Changing – Reserve Before 15 December
17th November 2020 / Advice & GuidanceDid you know that the Help to Buy scheme is not reserved for first-time buyers? It is also open to existing homeowners who want to move. But that’s all about to change...
Get The Look: Concorde House
18th June 2020 / Advice & GuidanceOur Concorde House show apartment demonstrates the very best of contemporary design and craftsmanship. Here's how you can replicate the style in your own home...