To kick-start the property market during post-lockdown, the Government announced a stamp duty holiday which will run until March 31st, 2021.
Paying stamp duty acts as a barrier to some people purchasing a property, so the Government plans that this move will inspire more people to do so as the housing market is a crucial part of the UK’s economy.
The Government stated the temporary move would mean 9 out of 10 people buying a home during the exemption period won’t need to pay any stamp duty at all.
Here’s we have assembled a list on how the changes which have taken effect immediately and how it may affect you:
Most First Time Buyers don’t pay stamp duty as they are already exempt up to £300,000. The holiday applies to properties up to £500,000 though so if you are a First Time Buyer in Doncaster buying at that maximum figure, then you would save £10,000 in stamp duty.
Home movers moving up or down the property ladder are likely to be the biggest winners here. If you are moving and your purchase completes before March 31st 2020, then you will not pay Stamp Duty at all as long as the purchase price is <£500,000. The Government predicts that the average stamp duty bill will fall by £4,500, but for properties priced at £500,000 the saving will be £15,000.
The stamp duty surcharge still applies (this got brought in to curb the number of investors buying homes that traditionally would have been bought up by First Time Buyers), but you will still be better off than before.
Under the old system, if you bought an investment property for £250,000, you’d have paid 3% on the first £125,000 and 5% on the second £125,000, resulting in a stamp duty bill of £10,000. During the holiday you will only pay 3% stamp duty on the total purchase price, meaning a bill of £7,500.
Malcolm was on BBC Radio Humberside on 09/07/20 to talk about the stamp duty statement and what was his thoughts, here was his response: