| Tweet |
Sun 12 Jul 2020
What is stamp duty?
Stamp duty is a tax paid by people buying properties in England and Northern Ireland. The amount handed to the government depends on where you are in the UK, the price of the property and if the purchase is your only property. Oversea buyers will face different stamp duty from 1st April 2021.
What has changed?
Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
How much stamp duty will I pay now?
If the property purchased is your main home you won't pay any stamp duty on it at all if it costs £500,000 or less. The next portion of the property's price (£500,001 to £925,000) will be taxed at 5%, and the £575,000 after that (£925,001 to £1.5 million) will be taxed at 10%. Landlords and second home buyers are also eligible for the tax cut but will still have to pay the extra 3% of stamp duty they were charged under the previous rules.
How much can I save?
This will save you as much as £15,000, if you are buying a property of £500,000 or more.
How long will the stamp duty holiday last?
This is a temporary measure designed to boost the flagging property market. It is effective immediately and will last until 31 March next year.
Can I still benefit if I've already completed a purchase?
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. 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 change.
"Having rented with several agencies, I found the process long and laborious, Ruby helped me make sense of everything, she was very helpful and conscientious, a very reliable professional."