Stamp Duty savings!
In July 2020, the Government announced some changes to Stamp Duty Land Tax thresholds meaning there would be savings on all property purchases, regardless of whether you're a first time buyer or have previously owned a property.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) is a fee, charged by the Government, when you buy a new residential home in England, whether brand new or pre-owned.
Your solicitor will usually calculate and pay your stamp duty on your behalf, although this is also something you can do yourself.
...when the Stamp announcement was made we knew it was a once-in-a-lifetime chance to buy a home and save some money in the process.
How much will I have to pay?
From 1 July to 30 September 2021, you will not have to pay Stamp Duty on properties costing up to £250,000. If you’re a first-time buyer, you will pay no Stamp Duty on properties costing up to £300,000, and a discounted rate, up to £500,000.
From 1 October, you will pay Stamp Duty on properties costing more than £125,000 for residential properties. If you’re a first-time buyer, you will pay Stamp Duty on properties over £300,000.
Do you already own a home?
If this isn't your first home and you're buying as an investment property, you can expect to pay higher rates. This usually means that an extra 3% is added to the standard stamp duty tax bands on properties costing more than £40,000 at the relevant rate at that time. This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
Investors, or those purchasing a second home, still qualify for savings following the Government offering stamp duty relief and will currently pay only 5% on properties ranging from £500,000 to £925,000 compared to 8%.
If buying a property for £600,000:
Until 30th June 2021 - £23,000
From 1st July 2021 - £38,000
From 1 April 2021, if you’re a non-UK resident buying a residential property in England or Northern Ireland, you will have to pay an additional 2% on top of the existing Stamp Duty rates for properties costing more than £40,000.
Find out more about rates of Stamp Duty for non-UK residents on the GOV.UK website.