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Stamp Duty Changes

How Much Money Will The Stamp Duty Changes Save Me?10th Jul 2020

by Ruth Elkins on 10th Jul 2020

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Discover how much you will save with Chancellor Rishi Sunak’s Stamp Duty holiday…

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First Time Buyers

Like most other buyers, you will pay no Stamp Duty on properties up to £500,000 in value.

Second Homes

You will pay 3% of the purchase price on properties up to £500,000. (Previously the 3% bracket stopped at £125,000.)

Buy-to-let Homes

These are no different to regular homes.

If the person purchasing a buy-to-let property does not own any other property (ie, they live in their parents’ home) then they will be treated as regular buyers. They will pay 0% Stamp Duty up to £500,000. 

But if they already own a home, this will be classed a second property and they will be subject to the 3% extra in Stamp Duty.

Holiday Homes

As with buy-to-let, if the person buying doesn’t own another property then they will benefit from 0% Stamp Duty up to £500,000.

However, if they already own a home then this will be classed a second property and they will be subject to the 3% extra in Stamp Duty.

Homes Valued At More Than £500,000

For properties costing more than £500,000, the Stamp Duty bands are unchanged. But you will still make a saving of £15,000 on the first £500,000.

So if you bought a £600,000 property for example, you'd pay £5,000 Stamp Duty (5% of the £100,000 above the threshold). Before the changes were announced, you would have had to pay £20,000. 

Important Note: The Stamp Duty cut applies to properties purchased between 8 July 2020 and 31 March 2021. You cannot claim back the Stamp Duty if you completed on 7 July 2020 for example.

And with regard to second homes and buy-to-let properties, the distinction is between the number of homes held at the point of completion – regardless of what that home is then used for.

If you want to save money, then you should start looking to buy as soon as possible – you have to complete by 31 March 2021.

Get Expert Legal Help Buying A Home

Buying a home is usually the biggest and most important purchase you will ever make. 

Get expert legal help from Coles Miller conveyancing solicitor Ruth Elkins, a Partner at our Broadstone office