During the latest budget, current Chancellor of the Exchequer Rishi Sunak announced that the Stamp Duty Holiday would be extended until June 30th, 2021 in England and Northern Ireland. This is (of course) owing to the ongoing COVID-19 pandemic.
However, if you are a first-time buyer or simply unfamiliar with the concept of Stamp Duty, you may not be aware of what this holiday actual entails or the benefits that it offers prospective homeowners.
For this reason, the team here at White Horse Surveyors are sharing this informative article with all the essential information…
What Is the Stamp Duty Holiday?
The term Stamp Duty refers to the tax that is paid on a property purchase.
This figure is calculated using a percentage of the price the the property sells for.
In July 2020, the amount that you start paying this tax was raised from £125,000 to £500,000 in England Northern Ireland to both encourage growth in the property sector as well as account for the financial difficulties experienced during the COVID-19 pandemic.
This break has meant that some home buyers who are spending over £500,000 can save as much as £15,000 in Tax.
What Happens When the Stamp Duty Holiday Ends?
When the Stamp Duty Holiday is due to end on June 30th, 2021, the tax being paid will enter a transitional period over the next 3-months.
During this time, the rates being paid will gradually return to their original state. More specifically:
- Between 1st July 2021 – 30th September 2021, the threshold in England and Northern Ireland will be reduced to £250,000.
- From 1st October onwards the original band of 125,000 will be reinstated.
To find out how much tax you will be required to pay, simply check out our Stamp Duty Calculator by clicking here.
What Other Options are Available For First-time Buyers?
If you are a first-time buyer, any purchases made under £300,000 (from July onwards) will not be required to pay any Stamp Duty.
Furthermore, due to a new government scheme, there are an increasing number of accessible mortgage options for borrowers. To encourage first-time buyers onto the property ladder, lenders are now proposing a deposit of only 5% for certain mortgage schemes.
Disclaimer: The Stamp Duty rates for any purchases made for second homes or Buy to Let properties will differ from those described in this article.
If you are buying or selling property and require independent advice on your best course of action, please do not hesitate to contact our helpful and friendly sales team.
Simply drop us an email via email@example.com.
Get an instant quote here.
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