What to expect from the stamp duty holiday
It is, without doubt, that 2020 has brought some surprises – not least a few financial nightmares. But one of the more positive things to come from the recent Coronavirus for new homeowners is the stamp duty holiday.
What is a stamp duty holiday?
In July, the Chancellor, Rishi Sunak, announced to buyers that no stamp duty would be paid on properties up to £500,000, with immediate effect, which is certainly something that will make life a little easier in these unusual times. This is most welcome for those who were in the process of buying their first home when lockdown was implemented or were selling and buying a new home and have found themselves in financial difficulties. In fact, this could be a lifeline for many and the difference between making their dream move or staying put.
Stamp duty is a tax that the purchaser pays when they buy a property or piece of land in England and Northern Ireland. As a seller, this fee does not apply to you but, of course, if you are buying another property, you are responsible for any taxes on that purchase.
How will it work?
Prior to this tax relief announcement, buyers would pay the stamp duty for a purchase over the price of £300k, which meant that many new house buyers falling below this bracket wouldn’t have to pay it anyway. However, prices have risen over the years, and now first-time buyers can benefit from no stamp duty fee when buying a property over this threshold, for a limited time, opening up more opportunities to own a higher value property.
The new measures also apply to people moving homes, who would have paid 2% of sums above £125,001 up to £250k and 5% between that figure and £925k. Moreover, second homes will benefit from a cut in fees.
How can I find out more?
You can visit HMRC’s website for further information and guidelines regarding stamp duty tax, or you can set about finding a local conveyancing solicitor. Is this all new to you? Not sure where to start? Try typing in ‘conveyancing solicitors near me’ to your Google search and find all of the conveyancing companies in your region.
The hope is that having this tax relief in effect will boost the property market, and it will stay in place until 31st March, 2021.