In his Statement in July, the Chancellor announced a Stamp Duty Land Tax holiday and this applies to all residential property purchases, including first-time buyers and those who are buying a second home or additional homes.
SDLT is a tax paid by someone who purchases a property or piece of land in England or Northern Ireland – Scotland and Wales have their own systems. The tax is paid when the sale is completed and is based on the sum paid.
The Stamp Duty Land Tax holiday runs until March 31st 2021, until which time any property purchases under £500,000 will be exempt. For purchases of £500,001 and over, SDLT kicks in at different amounts depending on the price.
However, it is important to note that those buying an additional home will still have to pay the higher rate of SDLT, which for purchases under £500,000 is 5%.
Raising the threshold means the average saving per house sale will be £4,500 and will take nine in ten sales out of the SDLT liability.
March 31st is only a few months away, so if you are thinking of moving or investing in property, now is a very good time to do so, to take advantage of this tax break. There are already signs that the housing market is moving, with property values jumping by 1.6 per cent in July.
There is also good news if you are buying a newbuild under the Help to Buy scheme. The Government has moved the deadline for builders to complete Help to Buy homes from December 31st 2020 to February 28th 2021. The legal completion date for most homebuyers remains at March 31st 2021.
If you are currently looking to buy a property and need a Swindon conveyancer, our solicitor-led team would be delighed to help with all the legal side. Please get in touch.
At Optimum, our legal team specialise in conveyancing (both for commercial and domestic property), wills and probate.