Are you in a position to move or buy your first home if you are you will be looking to take advantage of the current stamp duty holiday? Enable’s IFAs in Bishops Stortford can help you look at how the stamp duty holiday might work for you.
Stamp duty is a land tax that is paid to the Government when land or property is bought or transferred. In Scotland, the equivalent is called land and buildings transaction tax and in Wales, land transaction tax. To help during the pandemic the Chancellor on the 8th July 2020 introduced an immediate ‘Stamp duty holiday’. This ‘holiday’ will last until the end of March 2021.
What it means is that during this period no stamp duty will be payable for first-time buyers and those purchasing their only property up to £500,000 in England and Northern Ireland. Money Facts UK has created this example of what you can save with the current Stamp Duty holiday: If you purchase a property worth £350,000 and complete before the 31st March 2021. Before the change you would pay nothing on the first £125,000, 2% on the following £125,001 to £250,000 and finally 5% stamp duty for the remainder of the value of £350,000. The total stamp duty before the holiday would have been = £0 + £2,500 + £5,000 = £7,500.00. With the current stamp duty holiday, you would pay nothing for a purchase up to £500,000, saving you the significant sum of £7,500.
Stamp duty is calculated in a similar way to income tax bands. The bands are set by the land or property’s value and the percentage of stamp duty tax increases in each band. This means that the more expensive the property you want to buy, the more you will pay.
The Government’s stamp duty holiday has removed stamp duty on the first £500,000 on all properties. Enable’s experienced IFAs can help you look at how to take advantage of this stamp duty holiday.