You have until end of September 2021 to save on Stamp Duty
There’s still time for you to make savings
The Government’s temporary Stamp Duty holiday is still open on properties up to a value of £250,000.
Unfortunately the deadline has now passed for house buyers to enjoy a Stamp Duty-free transaction on properties up to a value of £500,000. However, you can still make savings on the first £250,000 until 30th September.
The value threshold reverts to £125,000 on 1st October so there is really no time to lose.
What is Stamp Duty?
Stamp Duty, sometimes called ‘property tax’, is a lump sum that’s usually payable when you buy a new home. The amount paid varies depending on the house price and its location. For example, if the price of your new home is £300,000, you’ll expect to pay 5% in stamp duty - a fee of £15,000. But until 1st October it will be £2,500. So it’s easy to see why the Government’s Stamp Duty holiday is so attractive to people. Not only can you save a substantial amount of money, but many buyers and sellers are more motivated to move quickly too.
What does this mean for you and your prospective home purchase?
It means that from now until the end of September the first £250,000 of a property’s value will incur no tax. You won’t pay a penny, as long as it’s your main residence and not a second home or buy to let property
Residential properties valued between £250,001 and £925,000 will then be taxed at 5%.
Does the Stamp Duty holiday benefit First Time Buyers?
Yes, good news, the rules are a little different for First Time Buyers. If you have never previously owned a property and it will be your main residence, then you will not have to pay any Stamp Duty up to £300,000.
Am I eligible if I’ve exchanged but haven’t completed?
It’s really important that you complete your purchase by 30th September 2021 - a day later and you’re likely to receive a Stamp Duty bill. That’s why we recommend you start your house-buying journey as soon as possible.
Even with a healthy property market and the Government’s Stamp Duty incentive, we know a lot of people are cautious about moving home at the moment. That’s why we’ve put together a range of guides to help make the process a little bit less daunting.
And remember - if you have any questions, we’ll be here to help. You can arrange a free mortgage advice meeting online or by calling 0345 601 3344.
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