With the extend stamp duty holiday in England and Northern Ireland coming to an end on 30th June, what happens next?
Almost a year since this temporary reduction and it has meant no stamp duty tax to pay for first time buyers and home movers purchasing properties below £500,000 before end of June 2021.
From 1st July, a staggered return will be introduced to previous stamp duty rates. The nil – rate band will be lowered from £500,00 to £250,000 until 30th September. From 1st October 2021 it will return to £125,000.
The rate will also depend on if you’re a first-time buyer. From 1 July, first-time buyers will pay no stamp duty on properties worth up to £300,000, and a discounted rate on properties up to £500,000.
With the stamp duty tax thresholds on property purchases set to change, if you’re thinking of moving soon you can use the stamp duty calculator on rightmove to work out how much you’ll pay.
Thinking of selling your property and have questions that need answering about selling your property? Simply contact one of our branches for help.
On the 8th July 2020, the government has today (8th July) unveiled a new stamp duty holiday that will run until 31st March next year. Read here for more details.
The impact has been striking but what does this mean for you?
Previously, stamp duty would have to be paid on homes sold for at least £125,000, or if a first-time buyer, on properties sold for more than £300,000.
Rishi Sunak has now raised this threshold to £500,000. Benefiting nine out of ten homebuyers paying no stamp duty at all, the average stamp duty bill falling by £4,500 and to help reinvigorate the post pandemic housing market.
Because the tax is paid after the sale of the home is finalised, even people who are midway through the process of buying a property will benefit from these changes. Buy-to-let investors and people in the market for a second home will also experience some relief due to the tax holiday, seeing a reduction to the stamp duty liability they would have otherwise have paid.
Not having to pay stamp duty means that all buyers will have more spare cash to help in the moving process, secure deposits and make renovations. Balancing a mortgage and decorating your dream home just got a little bit easier, making now the best time to dive into the property market.
With the team all now back at Lawler and Co, we are ready and waiting to answer all your queries, and help you find your perfect home.