How Much Money Will The Stamp Duty Changes Save Me?10th Jul 2020
Discover how much you will save with Chancellor Rishi Sunak’s extension of the Stamp Duty holiday until the end of September 2021…
Stamp Duty Holiday Extended
The nil-rate band on properties up to £500,000 has been extended until 30 June 2021. After this, the nil-rate band will fall to £250,000 until 30 September 2021. From 1 October 2021, the nil-rate band is set to return to its normal level of £125,000.
First Time Buyers
Like most other buyers, you will pay no Stamp Duty on properties up to £500,000 in value.
You will pay 3% of the purchase price on properties up to £500,000. (Previously the 3% bracket stopped at £125,000.)
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.
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 cuts apply to properties purchased between 8 July 2020 and the end of the scheme. 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.
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.