Stamp Duty Holiday Extension
The chancellor’s announcement on 3rd March 2021is great news for buyers, with the extension of the stamp duty holiday which exempts homes under the value of £500,000 from stamp duty until 30th June 2021. After this time the threshold will be lowered to £250,000 until the end of September and will return to the original threshold of £125,000 for residential properties on 1st October 2021.
What is Stamp Duty?
Stamp Duty Land Tax (SDLT) commonly known as Stamp Duty, is a charge you must pay when purchasing a property over a specific threshold in England and Northern Ireland. Stamp Duty applies when you:
- Buy a freehold property
- Buy a new or existing leasehold
- Buy a property through a shared ownership scheme
- Are transferred land or property in exchange for payment, for example you take on a mortgage or buy a share in a house
Stamp duty is charged at a percentage of the value of your home, which differs across various thresholds. Before the introduction of the stamp duty holiday in July 2020, you would be required to pay stamp duty on homes over the value of £125,000, this extension requires stamp duty to only be charged to properties over the value of £500,000. A great saving for buyers!
How can the stamp duty holiday help me?
Purchasing a home endures multiple costs, some you may not have been aware of. As the amount of money you save with the stamp duty holiday depends on the value of your home, it is different for everyone, however every saving is a bonus when buying a new home. Here are some examples of where you can make the most of your savings:
- You could apply for your home with a larger deposit, creating lower monthly repayments and saving you money in the long run.
- Mortgages are not just the deposit, expenses you may not be aware of include legal, valuation and booking fees, which can add up quickly.
- Whether it’s furniture and wallpaper or you have your eyes on a brand-new extension, extra savings means extra cash to make your new home just how you like it.
To find out more about Stamp Duty you can visit the government website here https://www.gov.uk/stamp-duty-land-tax
See our Stamp duty holiday FAQ's here
If you need any information regarding stamp duty or advice on selling your property please get in touch:
T: 0344 736 0063.