If you’re a house hunter then you will probably know at present there is a stamp duty holiday. This however is due to end on the 31st March. As we are now in February this means if you are planning on buying a new home now is a good time and to make extra savings thanks to the stamp duty holiday.
In July 2020 the Government suspended stamp duty on the first £500,000 of all property sales, potentially saving you up to £15,000. This new move was introduced to help the stale property market in 2020 due to the pandemic and to also help people who were hit hard financially too by the pandemic. On average the stamp duty of a property under the new scheme would drop by £4,500.
Anyone completing a purchase on a main residence costing up to £500,000 before the deadline will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount. This can save buyers as much as £15,000, if they are buying a property of £500,000 or more.
So how much could you pay under the present stamp duty holiday scheme? We put together a quick chart below.
You can also try our handy stamp duty calculator online here also to get an exact amount you would pay if anything at all as all sale sunder £500,000 do not require stamp duty paying. Please be aware that figures and plans are different of Scotland and Wales but we also have a handy stamp duty calculator for these too so you can check online.
If you are buying an additional property then you do have to pay stamp duty although this is at a lesser rate then before, see below for the figures if you are buying a 2nd property within the stamp duty holiday period.
• Less Then 500k – 3% Stamp Duty
• 500k to 925k – 8% Stamp Duty
• 935k to 1.5 million -13% Stamp Duty
• Over 1.5 million – 15% Stamp Duty
The present stamp duty holiday is due to end 31st March 2021 however there is a campaign to extend this and whilst we can’t say for sure if it will be extended due to the ongoing pandemic we suspect it might be being discussed. Hopefully it will be extended which will be good news for all potential new homeowners in 2020. There is actually a petition going which so far has surpassed 135,000 signatures which means Parliament now has to debate this scheme and the date is set to be the 1st February 2021.
When purchasing your new home its often the case that all extra costs and fees such as legal fees, survey fees, solicitors fees and stamp duty are the ones that can cause headaches and delay matters or even put people off. Maybe people can afford the mortgage itself and repayments but the upfront costs are just too much for people to make that final leap onto the property market. Not having to pay stamp duty is a big help and any extension even for 6 months would be a welcome relief for the housing market.
If you are thinking of buying or selling a property then you really need to start the process now to take advantage of the stamp duty scheme. The average time it takes complete on a property is 12 weeks so time is already running out. Hopefully the discussion in Parliament on the 1st February will bring some good news with the stamp duty holiday being extended.