Stamp duty has been temporarily paused for residential properties on the first £500,000 of the purchasing price of a property. This temporary change means that you may be able to save on stamp duty which you would normally need to pay on the purchase of a property or even a second property where the transaction completes before 31st March 2021.
Scotland has raised its starting threshold for Land and Building Transaction Tax for residential property transactions from £145,000 to £250,000. Wales have also increased the nil rate band for the Land Transaction Tax to £250,000.
What Does This Mean For You?
As a result of the changes, the amount of tax you pay could be reduced by up to £15,000 depending on where you are choosing to purchase your new home, buy to let, or holiday home. It also depends on the purchasing price of the property. In order to qualify for this, the purchase of the property must be completed before 31st March 2021.
It’s important to know that those buying a second home or are looking to buy a property through Buy To Let will still need to pay the Stamp Duty surcharge.
How Much Stamp Duty Tax Do I Need To Pay?
Usually, you can find an indication of how much stamp duty you will be liable to pay through your solicitor, estate agent, or conveyancer. They can also help you file your return and pay the tax on your behalf on the day of completion. Normally, they will add the amount to their fees and they can claim any relief that you may be eligible for, such as the first-time buyer.
To help you calculate and measure how many stamps duty tax you will need to pay, the Government has created a Stamp Duty Calculator which you can use.
Designed To Improve The UK Economy
This change can also help landlords who are looking to purchase property and improve the property market which was affected by the lockdown.
Rightmove reported that the demand for properties priced between £500,000 and £750,000 has increased by 40%, following the stamp duty holiday announcement.
<H2> About Stuart Mosley </H2>
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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