Arnoald & Philips intials logo

What does the stamp duty holiday mean to you?

 

What does the stamp duty holiday mean to you?

 

Confused about what the stamp duty holiday may mean for you and your purchase? We are here to help breakdown what the new government incentive means and how much you could save.

In a bid to boost the property market the government have announced a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland until March 2021 and this is already having an impact on the whole property market.

To help you understand what the stamp duty holiday means we will answer your most frequently asked questions:

How much will I save?

The Chancellor said in his statement that the stamp duty holiday would mean the average stamp duty bill would fall by £4,500 and that nearly nine out of ten people buying will pay no stamp duty at all.

This is true for anyone completing a main residence costing up to £500,000, with the properties above to be taxed on their value above that amount.

Put simply, the more expensive the property that you’re buying, the higher the stamp duty would have been – so the more you spend on your property before March 2021, the more you can save!

Why not take a look at some of our favourite £500,000 properties.

 

 

What does this mean for buy to let properties or second homes?

Second properties under £500,000 would have had to pay a 5-8% surcharge but as per new guideline will only pay 3%.

How have the guidelines changed?

Buyers had to pay stamp duty on a tiered basis when buying a home or piece of land worth £125,000 or more in England and Northern Ireland.

Old Rates New Holiday Rates
Up to £125,000: 0% Up to £500,000: 0%
On the portion from £125,001 to £250,000: 2% On the portion from £500,001 to £925,000: 5%
On the portion from £925,000 to £1.5m: 10% On the portion from £925,001 to £1.5m: 10%
Above £1.5m: 12% Above £1.5m: 12%
There are exemptions available for first-time buyers, who don’t have to pay stamp duty on the first £300,000, so long as the home doesn’t cost more than £500,000. The 3% stamp duty surcharge will apply on top of the new holiday rates, so people buying additional homes will attract a 3% stamp duty bill on the first £500,000 of property.

Why has the government introduced the stamp holiday?

Since April, there have been requests to assist the property market during the lockdown period, in order to prevent a negative impact on the market. The belief is that the stamp duty holiday can boost overall sales activity.

The good news is that we are seeing an active market here at Arnold & Phillips, and with the assistance of the stamp duty holiday we believe that you should not hesitate when putting your house on the market!

Do you think the stamp duty holiday will encourage you to buy before March 2021? Let us know in the comments.

Discover our properties today

THREE
LOCAL
OFFICES...

Arnold Philips Logo