As you might be aware, there was a ‘holiday’ on stamp duty which started on the 8th July 2020 and ended on the 30th June this year. This date had already been extended from 31st March 2021 and meant that there was a reduction in stamp duty to zero for any homes purchased at or below £500,000.
This saw a flurry of potential homeowners scrambling to get their purchase finalised before the cut-off / date in June. What you might not be aware of, is how stamp duty has changed since then. Let us explain.
If you are in the process of buying a home and missed the 30th June deadline, you still may have a chance to save. Stamp duty is being re-introduced gradually, which means that homes valued at £250,000 or lower will still be able to avail of the no rate stamp duty until 1st October after which stamp duty will be lowered back to its original state of homes valued at £125,000 or lower.
It is important that potential homeowners know the costs involved before and during a property purchase. Stamp duty is the tax paid on the purchase and generally works on a sliding scale meaning that the lower the purchase price of a property, the lower the stamp duty. However, there are many more factors to consider which include; whether you already own more than one home, if you intend to live in the new property, if you are buying a property jointly with someone else or if you are a non UK resident.
Also to be taken into account is that you might be due a relief on stamp duty depending on your circumstances, such as being a first time buyer, if you are a property developer or you are transferring a property between companies.
For home movers, It is worth doing your homework before you decide to purchase a property to get an idea of what taxes and reliefs you will be liable or eligible for.
If you need help, we have compiled a handy Buyer’s Guide for those who are looking to get on or climb the property ladder. Take a look here.
For more help, advice or information on the latest property news or upcoming changes and dates, please feel free to contact us and we will be happy to help.