From the 8th of July 2020, Rishi Sunak revealed the government has brought in a stamp duty holiday, meaning anyone completing a property purchase after that date would not have to pay stamp duty on the first £500,000 of a property’s purchase price.
Until 31st March 2021, the temporary measure has been introduced in a bid to attract homebuyers, and the treasury believes that 9 out of 10 people getting on or moving up the property ladder this year luckily won’t pay stamp duty now.
So, what is stamp duty?
- Stamp duty is a lump-sum tax that anyone buying a property or land costing more than a set amount must pay.
- The rate of tax you must pay varies – in England you pay nothing on properties purchased below £125,000 and then:
- 2% on a portion of property between £125,001 and £250,000
- 5% between £250,001 and £925,000
- 10% between £925,001 and £1,500,000
- And then 12% costing more than £1,500,001 and more.
If you’re looking to take advantage of this stamp-duty holiday, then why not get in touch with our IFA’s who are on-hand to guide you through the process and offer you advice whenever you require?
Your home may be repossessed if you do not keep up repayments on your mortgage. The FCA does not currently regulate buy to let or commercial mortgages.