Government cuts property stamp duty until March 31st 2021

Government cuts property stamp duty until March 31st 2021

07 July 2020

Chancellor Rishi Sunak has announced a Stamp Duty holiday with immediate effect on all property sales in England and Northern Ireland up to the value of £500,000 until March 31st 2021.

This means that you won’t pay any stamp duty on homes up to £500,000, saving you up to £15k in tax!

People buying second homes and buy-to-let properties will also benefit, but will still have to to pay the 3% extra duty due on the entire price.

The more you pay - up to the new £500,000 threshold - the more you could save on stamp duty. Before the stamp duty holiday, if you bought a house for £275,000, for instance, the stamp duty you'd have had to pay would have been £3,750. That's based on 0% duty on the first £125,000, 2% on the next £125,000 (£2,500), plus 5% on the final £25,000 (£1,250).


What does this mean for our current homebuyers

If you have already reserved but not yet completed –you will benefit from the tax cut if the home you are buying is £500k or less. You don’t have to do anything. You can speak to your Sales Consultant or Solicitor for more information.
 
What does this mean for our new homebuyers

As long as you complete before the 31st March 2021 you can take advantage of this generous tax cut. If you are ready to reserve – book an appointment at your local development today.

Key Details

  • 89% of sales will be exempt from the basic level of stamp duty, 73% more than today’s exemptions

  • £3.8 billion could be saved by buyers, boosting the wider economy as they invest in home improvements, white goods and furniture

  • In 28 local authorities across England the proportion of sales liable for stamp duty will fall to 10%, compared to 95% today

  • The areas benefiting the most from the change are in and around London, where 95% of sales in some localities will not be liable for stamp duty

Ready to find your forever home? Visit our developments page.

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