According to Rightmove’s property expert, Miles Shipside: “Lockdown had prevented 175,000 would-be sellers from coming to market”.
Prior to the Chancellor’s announcement, you would have paid stamp duty on all properties sold for £125,000 and over or, if you are a first-time buyer, on properties sold for £300,000 and over.
The stamp duty holiday, which runs until 31st March 2021, means that you now only pay duty on properties costing more than £500,000.
For example, if you’re not a first-time buyer purchasing a house for £500,000, prior to July 8th, you would have been required to pay £15,000 in stamp duty.
During the new stamp duty holiday, you won’t need to pay a penny!
With the stamp duty holiday in mind, when purchasing a home, you’ll need to factor in the cost and time it takes for the following:
- Finding a house
- Making an offer
- Obtaining a mortgage
- Sales chain involved
- Obtaining a property survey
- Finding and appointing a conveyancing solicitor
- Preparation of legal work and property searches
- Booking a removals company
If you would like to find out more information about the stamp duty holiday, then visit; Stamp Duty Land Tax: temporary reduced rates
On the 1st April 2021, stamp duty will revert to the rates of SDLT that were in place prior to 8th July 2020.
Stamp duty explained
If a person buys a property or land costing over a certain amount, then stamp duty will need to be paid.
Stamp duty is a lump-sum tax that anyone buying a property or land costing more than a certain amount must pay. Stamp duty is a tax that is levied on a single property purchase.
A physical stamp had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp.Previous to the stamp duty holiday, you would have needed to pay a percentage of a property bought for over £125,000 or £300,000 for first-time buyers, to the government. Up to the 31st March 2021, any property up to £500,000 bought in England and Northern Ireland will have no stamp duty to pay.