Stamp Duty Holiday
Stamp Duty Holiday – What Does This Mean For Landlords, Home Movers, and First-Time Buyers?
The government have granted a stamp duty land holiday to homebuyers in England and Northern Ireland. Buyers of homes valued at up to £500,000 will no longer pay stamp duty on the purchase until March 2021.
As the housing market faces the impact of Covid-19, in July 2020, Chancellor Rishi Sunak announced the stamp duty holiday in aid to boost the market. This measure could save the average homebuyer over £2,000.
First-time buyers will only need to pay stamp duty on properties costing more than £500,000, rather than £300,000. This means the stamp duty holiday will only benefit first-time buyers when buying in more expensive areas.
Home movers will benefit from increased savings due to the stamp duty holiday. As it only applies for properties over £500,000, these means more savings for individuals moving up the property ladder.
Landlords and people buying a second home will still need to pay the 3% surcharge, but will benefit from the raised threshold. When purchasing a £500,000 home, landlords and investors will only need to pay 3% on the whole value, which results in a £15,000 saving.
The table below shows the percentage of stamp duty you will pay due to the stamp duty holiday:
|Property Purchase Price||Rate On Primary Residence||Rate For Additional Properties|
|Up to £500,000||0%||3%|
|£500,001 – £925,000||5%||8%|
|£925,001 – £1,500,000||10%||13%|