STAMP DUTY HOLIDAY

Stamp Duty Holiday

Rishi Sunak has announced major changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland.  The Chancellor of the Exchequer will temporarily extend the level at which the tax is charged from £125,000 to £500,000 with the aim of injecting confidence in the property market and driving growth.

 

James Birt comments “This is good news for the property market as it will save house movers thousands of pounds - an individual buying a home worth £275,000 will save £3,750.  There will also be savings for investors, who will now only be paying 3% SDLT on purchases below £500,000.”

 

“This could potentially open up the market as many homeowners feel encouraged to bring forward any plans to move home.  We could also see a surge from investors at the lower end of the market which we would expect to have a knock-on effect.  There is currently a major shortage of good quality rented property in Gloucestershire, for example three bedroom, family properties are always in high demand and short supply.”

 

Information from Gov.uk outlines the new thresholds:

(Source: https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates)

 

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

 

Property or lease premium or transfer value

SDLT rate

Up to £500,000

Zero

The next £425,000 (the portion from £500,001 to £925,000)

5%

The next £575,000 (the portion from £925,001 to £1.5 million)

10%

The remaining amount (the portion above £1.5 million)

12%

 

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.  The following rates apply:

Property or lease premium or transfer value

SDLT rate

Up to £500,000

3%

The next £425,000 (the portion from £500,001 to £925,000)

8%

The next £575,000 (the portion from £925,001 to £1.5 million)

13%

The remaining amount (the portion above £1.5 million)

15%

 

For further advice on Stamp Duty or discuss the value of your home then please contact your local branch:

Cheltenham 01242 252699

Gloucester 01452 398010

Newent 01531 828970

Stonehouse 01453 827640



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