Stamp duty is the tax you pay when buying a property, which varies on the amount of the property in England and Northern Ireland. Before yesterday those buying properties of £125,000 or more would pay stamp duty, unless they were a first-time buyer, which was a £300,000 threshold. Now home owners buying properties under £500,000 in England and Northern Ireland will not have to pay any stamp duty land tax currently. So those buying between the 8th of July 2020 and the 31st of March will not pay any stamp duty on properties under £500,000. Those properties which are above this price range will only be taxed on their value that is above £500,000. For example, a property that is worth £575,000 rather than paying 5% of £575,000, now you would only pay 5% of £100,000; so, the amount over £500,000. This could save buyers thousands of pounds in savings, as this would mean on average homes at £500,000 will be saying around £15,000!
This scheme was set to help those who have been finically hit by Covid-19, as the BBC noted that nine out of ten buyers will no longer have to pay any stamp duty. Those who are buying second homes and landlords will still have to pay the additional 3% of stamp duty, like before, however will still benefit from the tax cut, as the stamp duty holiday will still apply under £500,000. Properties between £500,001 and £925,000 will pay 5% and £925,001 to £1.5 million will pay 10%, then lastly with properties over £1.5 million will be paying 12% stamp duty. If you have any questions regarding stamp duty and the price you now need to pay, give us a call on 01233 501601 or email us at firstname.lastname@example.org.
READ MORE: https://www.bbc.co.uk/news/business-53319433
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