It is positive news for house buyers following the Government’s budget announcement. Lisa Neary, Head of Property Team at Maxwell Hodge Solicitors provides an update…
In his latest Budget, the Chancellor, Rishi Sunak, announced the extension to the stamp duty holiday meaning that, those who are in the process of buying, still have the chance to complete within the extended three-month period and, as a result, benefit from the savings on offer.
What is the stamp duty holiday?
The stamp duty holiday was announced last July, in response to the current pandemic, and meant that no stamp duty was payable on the purchase of residential properties under the value of £500,000. The holiday was intended to last until 31 March 2021.
Prior to the holiday, tax would be payable for any property over the value of £125,000 – the amount being dependant on the value of the property.
What has changed?
- There is a three-month extension to the stamp duty holiday until 30 June 2021.
- From 1 July 2021 until 30 September, stamp duty will still not be payable on properties under the value of £250,000.
- From 1 October, the stamp duty will begin to apply for properties valued £125,000 and above, with pre-Covid stamp duty thresholds and levels resuming.
Can I still benefit from the stamp duty holiday?
If you are in the process of buying a property, you have a greater chance since the holiday extension of making stamp duty tax savings.
If you are a new buyer, it might be difficult to benefit from the scheme unless you are a cash buyer or the property is valued below £250,000. You then have until 30 September 2021 to benefit from the stamp duty holiday.
Lastly, the Government has introduced a new mortgage guarantee scheme available from April 2021. The scheme is not just for first time buyers but home movers too and is available to buy properties up to a value of £600,000, as long as borrowers have a 5% deposit.
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