Chancellor Rishi Sunak has announced a short-term holiday on stamp duty fees for properties sold in England and Northern Ireland (Scotland and Wales operate different systems). This means that purchases made before 31 March 2021 will include a considerable saving.
Stamp duty is paid when you buy your house (unless this is your first purchase – different rules apply here).
Typical costs for a house valued at £300,000 are £5,000. A house selling for £500,000 would attract a fee of £15,000 (paid to HMRC). See the gov.uk webpage for more detail. https://www.gov.uk/stamp-duty-land-tax
Chancellor Sunak has decided to temporarily waive these fees, meaning that all houses selling for £500,000 or less, attract no stamp duty at all. A considerable saving!
Property selling for more than £500,000 (where the tax payable is 5% up to a value of £925,000) will have a reduction in the duty payable of £15,000. So for example, if you are buying for £700,000 the stamp duty fee would ordinarily be £35,000. During this temporary period the fee would reduce to £20,000.
The stamp duty holiday has been announced as a help to home buyers, given the impact of COVID19. The holiday finishes on 31 March 2021, meaning that sales after 1 April will be subject to the usual fees.
So, if you’re thinking of moving and having that extra saving sounds like a good idea, why not contact one of our award winning advisers at McRobieAdams?
We offer tailored advice to your particular circumstances, and can advise on how much you can borrow. We use whole-of-market lenders so have the widest possible choice to get you the best deal for you.
To find out more, give us a call on 0333 320 8300