Last week in the Budget the Chancellor Rishi Sunak extended the stamp duty holiday by three months. The new deadline will now be on the 30th of June. Enable’s experienced IFAs can see this is a welcome relief for many homebuyers who have recently been trying hard to complete their transactions before the previous deadline of March 31st.
Last year The Treasury announced that it would temporarily raise the stamp duty threshold from £125,000 to £500,000 for property sales in England and Northern Ireland. But as another response to Covid and lockdown when stamp duty payments return after the new June 30th deadline, the limit will be lowered to £250,000 until the end of September, and then return to the normal level on October 1, 2021. This tapered ending avoids a “cliff-edge” for buyers after the new deadline says The Treasury.
These changes introduced last July mean that buyers in England and Northern Ireland do not have to pay stamp duty tax for the first £500,000 of the cost of their new property. The threshold earlier was only £125,000.
This is the breakdown of the current stamp duty rates:
Up to £500,000 – no stamp duty
£500,001 to £925,000 – 5%
£925,001 to £1.5m – 10%
Above £1.5m – 12%
For example, if you bought a house for £600,000, you would pay nothing on the first £500,000 and then 5% on the remaining £100,000, which would be £5,000.
Enable’s IFAs know that first-time buyers have not had to pay stamp duty on purchases up to £300,000, although some of the rules can vary depending on whether the property is residential or non-residential, freehold or leasehold etc. If you are looking to secure some property and take advantage of the Stamp Duty Holiday extension Enable’s IFAs in Bishops Stortford can help you find the right mortgage for your circumstances.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage