Stamp Duty Land Tax (“Stamp Duty”) holiday

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The UK housing market is open for business and the potential to save thousands on Stamp Duty has created an exciting opportunity for those looking to move house.

Our specialist conveyancing team have all the knowledge to assist you with the conveyancing process. Partner, Emma Amat oversees the residential property department, she explains what the Stamp Duty holiday could mean for you.

What is Stamp Duty?

Stamp Duty is a tax payable when you buy property or land in England and Northern Ireland. Scotland and Wales have a different land tax process.

Stamp Duty is calculated at an increasing percentage based on the purchase price. For commercial property or land the starting rate and percentage bands are calculated differently to residential property.

Why should you consider buying a house now?

On 8 July 2020, the Government announced a temporary Stamp Duty break. This means that between then and 31 March 2021 anyone buying a house, for the first time or to replace their main home, for £500,000 or lower won’t have to pay Stamp Duty.

Those buying second homes or buy to let properties will also benefit. The surcharge will still apply but this will be 3% of the purchase price up to £500,000 and 3% thereafter on top of the standard rate.

The aim of the Stamp Duty holiday is to boost the property market.

If you’re contemplating moving house, and have considered your financial position going forward, this is certainly an opportune time to purchase, especially if you’re thinking of buying a property in excess of the usual £125,000 band that signals the start of charges for Stamp Duty.  For example, if you purchased a property for £500,000 before 8 July 2020 you would have paid £15,000 Stamp Duty.

If you’d like further advice on taking the next steps in buying a house or understanding what these changes in Stamp Duty mean for you, contact Emma Amat by calling 01538 399199 or emailing ea@bowcockpursaill.co.uk.