What is Stamp Duty?
Stamp Duty is a tax payable on certain property purchases. The amount of tax varies depends upon where you live in the UK and the price of the property. The amount payable also varies dependent on whether you are a first time buyer or if you are buying a second property.
How has Stamp Duty changed following the announcement today?
This afternoon, the Chancellor, Rishi Sunak, announced a temporary Stamp Duty Land Tax holiday. It will apply to the first £500,000 on all property sales in England and Wales.
If you are buying a second home, or a buy-to-let property, you will also benefit but will still have to pay the 3% extra duty due on the entire price.
Does Stamp Duty affect the property market?
Stamp Duty Land Tax is often cited as a spanner in the wheels of the housing market. The added expense can discourage people from moving home.
It is hoped that the temporary holiday from Stamp Duty Land Tax will invigorate the property market following stagnation during the Covid-19 pandemic. Some commentators are, however, concerned that it may create an artificial demand for property purchases that could lead to a slump when the holiday ends.
When does the Stamp Duty Land Tax holiday begin?
The changes have come in with immediate effect and will last until 31 March next year.
I have already exchanged on my property purchase – can I still benefit?
Stamp Duty is only payable once you have completed the purchase of a property. Therefore, if you have exchanged prior to 8 July but not completed, you will still be able to benefit.
If you are purchasing a property and need a survey, or are thinking of selling and would like a market appraisal, please call us on 01327 361664.