Stamp Duty ‘Holiday’
Stamp Duty ‘Holiday’
On Wednesday, the chancellor announced details of a Stamp Duty ‘holiday’ on home sales from 8th July 2020 through until 31st March 2021. His aim, by reducing Stamp Duty Tax is to make it more affordable for people to buy property. This has been done to kickstart the property market and help the country to recover after the pandemic.
But, how will it work and which properties will be eligible under the new offer?
Properties under £500,000
All properties in England and Wales, with a price tag below £500,000, are exempt from paying any Stamp Duty Land tax. This temporary offer will last until the end of March next year. Previously, only properties below the value of £125,000 were exempt from Stamp Duty. Of course, this has been different for first-time buyers for a couple of years now. For those buying their first home, the Stamp Duty threshold was previously at £300,000. But today, whether you are buying a first home, upsizing to something bigger, or even downsizing; you will not need to fork out extra for Stamp Duty, up to the value of £500,000.
Are there changes above £500,000
Not with the standard rate of tax, this will remain at the current level. However, if you are buying a home for more than £500,000, you will only start paying Stamp Duty tax on the portion after £500,000. And that’s where you will save.
For example, if you buy a property for £750,000, the stamp duty will come down from £27,500 to £12,500. This makes a significant saving of £15,000.
Will a reduction in stamp duty make a difference?
We think it most definitely will. There’s plenty of demand for homes. This has been the case since the lockdown was lifted for estate agents, and the property market. Supply however, has been even more limited. It’s clear the aftereffects of the pandemic, and a weakened market have put sellers off.
In this area especially, around Altrincham, Hale and the neighbouring towns and villages, there will always be demand for property. The reduction in the stamp duty tax will help to lift seller, as much as buyer confidence. Buyers, for making their dream home purchase that little more affordable. And sellers, knowing they are more likely to make a sale in the current climate. And of course, take advantage of the stamp duty holiday for their next purchase.
To get your property on the market and sold with a reputable local estate agent who knows the area, and prides itself on excellent service, contact us today. We can get you the best price for your property, with the least possible stress. Call 0161 941 4445 or request a FREE valuation with us.