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8 July 2020

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We’re All Going On a Stamp Duty Holiday

Posted by: Tom Simpson

In this afternoon’s Summer Statement to the Commons the Chancellor announced a Stamp Duty holiday. As part of the government’s attempt to restart the economy after the lockdown caused by the Coronavirus pandemic, they made some major changes that will impact buyers until March 2021.

With the housing marketing reopening at the end of May, the property landscape has changed for many with prices being renegotiated and mortgage companies requiring more from lenders. The move from Government aims to get people moving, and hopes to have a knock on effect of sick starting construction for new builds too.

For anyone looking to purchase a residential property between 8 July 2020 and 31 March 2021 there is now a zero per cent rate of tax for property up to £500,000. This extends the lowest band – doubling the upper limit of the property value. Prior to the announcement buyers were expected to pay two percent for a property between £125,000 and £250,000 and five per cent for property between £250,001 and £925,000.

This stamp duty holiday will also affect buyers looking to purchase additional properties. The three percent higher rate still applies, but it applies to the new banded levels.

The full breakdown of rates is below.

Currently the government’s SDLT calculator has not been updated. Speak to our solicitors today to discuss how this change in stamp duty will impact your purchase.

Stamp Duty Land Tax Rate Bands for Single Property Ownership

Property or lease premium or transfer value SDLT rate
Up to £500,000 Zero
The next £425,000 (the portion from £500,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

 

Stamp Duty Land Tax Rate Bands for Additional Properties

Property or lease premium or transfer value SDLT rate
Up to £500,000 3%
The next £425,000 (the portion from £500,001 to £925,000) 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 13%
The remaining amount (the portion above £1.5 million) 15%

 

 

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Tom Simpson - Head of Residential Conveyancing

To discuss how Glaisyers can assist you contact Tom Simpson on tom.simpson@glaisyers.com or via 0161 832 4666.

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