The Government has announced adjustments to the Stamp Duty Land Tax (Stamp Duty) payable upon completion of a purchase.
Stamp Duty is a tax paid by buyers, which is due within 14 days after completion of the purchase of a property. Stamp Duty is paid in brackets as opposed to being a single percentage payable for the total value of a property.
In the past, Stamp Duty has been adjusted to offer benefits to first-time buyers, however the recent changes will benefit all buyers in the market.
The Government have announced a Stamp Duty break commencing on 8th July 2020 and running until 31st March 2021. This break will see the minimum threshold for paying Stamp Duty raised from the current threshold of £125,000 to £500,000.
This new rate applies to all buyers, including those who are purchasing a second home or buy-to-let property. You can use our stamp duty calculator to work out how your purchase may be affected.
Stamp Duty for properties over £500,000, and for second homes or buy-to-let properties, is still payable.
The new Stamp Duty reduction will enable many buyers to step onto the property ladder without needing to factor in the cost of Stamp Duty, potentially allowing for significant savings.
If you are looking to buy a second property you will still pay the surcharge on the total price of the property, as well as Stamp Duty.
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