How you can save thousands of pounds on stamp duty this year!
If you purchase a residential property between now and 31st March 2021 you could save thousands of pounds on not paying any stamp duty on a property purchase of up to £500,000. These new rules came into place on the 8th July this year to help the property market build back up again and help people buying property during the coronavirus pandemic.
The stamp duty relief is for first time buyers and for people who already own their house and looking at selling their property and buying another. Unfortunately stamp duty relief does not apply to any anyone who owns more than one property (buy-to-let).
Before the stamp duty holiday and after the stamp duty holiday
Before 8th July 2020 and after 1st April 2021 if you bought a property for over £125,000 you would pay stamp duty land tax on the purchase price of the property.
An example of this would be if a property is purchased at £190,000 the first £125,000 is stamp duty free and the remaining £65,000 has a 2% SLTD which would have a total of £1,300.
A property purchased at a value of £600,000 again the first £125,000 is free from stamp duty, the next £125,000 has a 2% SDLT = 2,500 and the remaining £350,000 would be 5% SDLT = £17,500 having a big £20,000 stamp duty tax on it altogether.
Stamp duty holiday
During the stamp duty holiday all residential homes purchased up to £500,000 is free of any stamp duty including first time buyers.
If a house is purchased over £500,000 there is a 5% SDLT on the remaining amount. For example, if a property is purchased at £600,000 the first 500,000 is free from stamp duty and remaining £100,000 has only a 5% SLTD with an overall amount of £5,000 in stamp duty. The stamp duty holiday is a great way of saving thousands of pounds as you can see above how much money can be saved at this time!
First time buyers and stamp duty
As a first-time buyer from the 1st April 2021 there is no charge on stamp duty on a property purchase of up to a £300,000. This is also the same if you are buying a property with another party who is also a first-time buyer.
If you were to purchase a property over £300,000 you would then have to pay stamp duty land tax. If you purchased a property at £375,000 the first £300,000 is free from SLTD and the remaining £75,000 would have 5% SLDT only paying £3,750 in stamp duty.
If you are buying a property with someone who is not a first-time buyer or has another property, then the stamp duty applies on a property which is purchased on a property over £125,000.
If you are thinking of buying a property, now is the best time to be looking! You could save yourself thousands of pounds or buy a bigger and more expensive property what you have forever been dreaming for! Take a look at the above listing which has a massive £15,000 saving on it! CLICK HERE