Speak to us
Get started on your journey to a fast, stress-free sale by filling in our quick form, and we’ll be in touch with next steps.
Back in July, Chancellor Rishi Sunak revealed that the government were imposing a stamp duty holiday. The temporary holiday is in place until the 31st March 2021 and means anyone buying a property up to the value of £500,000 before this date will not have to pay a penny in stamp duty.
The stamp duty holiday was deployed as part of the country’s economic response to the pandemic. Before its introduction, stamp duty had to be paid on all homes that sold for £125,000 or more. For first-time buyers, this threshold was set at £300,000.
The stamp duty holiday applies to England Northern Ireland only. Both Scotland and Wales self-govern, which means their respective governments are responsible for any property levies they want to impose.
Stamp duty is a one-off tax that most people who purchase a house, land, or commercial building must pay. Once the stamp duty holiday is over on the 1st April 2021 (as it stands) the standard stamp duty rates will apply:
|Property Price||Stamp Duty %|
|£125,000 or under||0%|
|£125,001 to £250,000||2%|
|£250,001 to £925,000||5%|
|£925,001 to £1.5 million||10%|
|£1.5 million or over||12%|
As far as the public is aware the above rates will be reinstated when the stamp duty holiday ends. However, the government could potentially extend the holiday or change stamp duty altogether. It is expected that Rishi Sunak will address this nearer the time.
You will not currently have to pay stamp duty on a property up to £500,000. However, buyers will have to pay stamp duty on any amount over the £500,000 threshold. The percentages are now set at the following until the 31st March 2021:
|Property Price||Stamp Duty %|
|£500,000 or under||0%|
|£500,0001 to £925,000||5%|
|£925,0001 to £1.5 million||10%|
|£1.5 million and over||12%|
For example, if you purchased a property for £700,000 you would fall into the 5% category as your taxable sum is £200,000. This means you would pay £10,000 in stamp duty.
However, say you bought a new home for £300,000 before March 31st 2021 you wouldn’t pay any stamp duty. After this date, when the stamp duty levy goes back to normal, you would have to pay £5,000.
For those buying properties under £500,000 it may be the ideal time to really focus on finding a new home. There are still months left before the stamp duty holiday ends and despite the first lockdown stagnating the property market, there are now an influx of sellers. Many property experts have argued that the stamp duty holiday has encouraged those who weren’t considering moving to start looking at new homes, meaning there may be a little more competition than usual. This is not surprising when buyers could save themselves thousands of pounds. Take a look at some of the savings below:
|Property Sale Price||Old Stamp Duty Fee||New Stamp Duty Fee||Saving|
Despite the second lockdown it was confirmed that estate agents can remain open during the November and early December period. Traditional and online estate agents are still able to conduct viewings and meetings providing social distancing is maintained. House moves can still go ahead, and removals companies are still operating.
If you are considering moving house before March next year get in touch with SOLD.CO.UK today. We offer a complete house selling service as well as offering houses for sale. We offer three ways for you to sell your home because we understand that everyone’s circumstances are different. You can call us today on 0800 566 8490.
The stamp duty holiday is effective until the 31st March 2021. The government will advise if the holiday will be extended or if changes will be made to the usual stamp duty fees.