Stamp Duty Holiday Explained - 13/07/21
Many buyers and sellers have already benefitted from the stamp duty holiday, with some saving up to £15,000. The holiday has provided the housing market with a significant boost and has given many buyers and sellers the confidence to move.
In a bid to reinvigorate the economy after the first national lockdown in March 2020, Rishi Sunak announced the threshold for stamp duty would be increased to £500,000 until 31st March 2021, when the threshold would return to £125,000.
The tax break was extended until the end of June for properties up to the value of £500,000, with the threshold dropping to £250,000 until the end of September.
Although the maximum saving has ended, the good news is you could still make some stamp duty savings if you complete on a property before the end of September. To make a saving, you must legally complete by the deadline, meaning that time is of the essence for instructing an agent and putting your home on the market.
From 1st October, the threshold for paying stamp duty will return to £125,000. The amount of stamp duty tax you’ll need to pay depends on a wide range of factors, including how much you pay for the property, the location of the property, whether you have a UK passport, when you buy and whether you’re a first-time buyer. It also depends on whether you’re buying a main home, a holiday home or an investment property.