What You Need To Know About The Stamp Duty Holiday

Posted on: 9 July 2020

What you need to know about the Stamp Duty Holiday

What does the stamp duty holiday mean for you?

On 8th July, the Chancellor Rishi Sunak announced that all property purchases (of main homes) under £500,000 will not have to pay stamp duty until 31st March 2021.

That’s over 7 months when you can save up to £15,000 compared to purchasing a property this year at the previous 2020 stamp duty rates.

Who will this help?

For nearly 9 out of 10 people buying their main home, this means they will pay no stamp duty at all.

The change came into effect immediately for property in England and Northern Ireland.

What does this mean for first time buyers?

Up until the 8th July 2020, first time buyers paid no stamp duty up to a value of £300,000, this stamp duty holiday means they will not pay stamp duty up to a value of £500,000 – increasing the stamp duty relief for first time buyers by £200,000 until 31st March 2020.

What if this purchase isn’t my first home – but it is my main home?

The great thing about this stamp duty holiday is it applies even if you’re not a first time buyer.

So whether this is your third move or your eighth, you still won’t pay any stamp duty on the first £500,000 of a property purchase.

How does the stamp duty holiday apply if I’m buying a second home?

For second home purchases the overall saving isn’t quite as generous – you still have to pay the additional duty on the overall value of the property, but you won’t also have to pay standard stamp duty on the first £500,000. For a £250,000 home this means that instead of paying £2,500 in Stamp Duty and the 3% additional duty for a second home – which in this example would be £7,500 – a total of £10,000 - you will only pay the additional 3% duty of £7,500. So second home buyers will still benefit from a saving of £2,500 in that example.

I’m a landlord, and purchasing a property as a buy to let, how does the stamp duty holiday affect me?

As a landlord you will see the same benefits of someone purchasing a second home – the provision of the stamp duty holiday with the additional rate of between 3%-15% depending on the value of the property). Anyone can use the Government stamp duty land tax calculator to help them make an accurate calculation – visit it here https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

 

Remember, even if you do not have to pay stamp duty, you must still submit a stamp duty return. This is normally dealt with by your solicitor, however for more information on this use the gov.uk website https://www.gov.uk/guidance/stamp-duty-land-tax-online-and-paper-returns

 

If you have any questions or comments about the stamp duty holiday, don’t hesitate to contact the hunni homes team on 01892 888 333 or email hello@hunnihomes.co.uk

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