Everything you need to know about the new Stamp Duty holiday

Posted on July 31, 2020

As of the 8th July 2020, the rules surrounding Stamp Duty Land Tax (SDLT) have temporarily changed. In a bid to aid buyers and help the wider economy recover following lockdown, Chancellor of the Exchequer Rishi Sunak has announced a Stamp Duty holiday.

Our estate agents specialise in helping people from all walks of life find the right next home for them, so it’ll come as no surprise that we’re greeting the reduced Stamp Duty rates with open arms. In this blog post, we reveal what’s in store for the property buyers searching for their next home now and those currently in the buying process.

What is Stamp Duty?

Stamp Duty Land Tax is generally payable when you purchase a residential property or land in England. Before the Chancellor’s announcement, those purchasing homes for £125,000 or above would be liable to pay Stamp Duty within 14 days of completion.

Under previous rules, the Stamp Duty threshold for first time buyers was much higher, with first time buyers only needing to pay Stamp Duty if their purchase price was more than £500,000.

What’s changed?

The Stamp Duty holiday is exciting news for those currently searching for their next home and people in the midst of purchasing a residential property.

Under the new rules, buyers will pay no Stamp Duty on purchase prices of up to £500,000, which equates to significant savings for residential property buyers. You could save up to £15,000 in Stamp Duty meaning more money to spend on your new home.

The Stamp Duty holiday is available to those buying their first home and buyers who have owned property before.

How long will the holiday last?

The Stamp Duty holiday is available until 31st March 2021. The same rules apply in regards to when Stamp Duty must be paid if part of your purchase is above the new £500,000 threshold.

What if I’m buying a second home?

If you are purchasing an additional property, either for use as a second home or as a buy-to-let, you will be eligible for the Stamp Duty holiday but will still have to pay the extra 3% in Stamp Duty as before. The 3% Stamp Duty rate is applicable for properties purchased for £40,000 or more.

I’ve just completed, can I claim my SDLT back?

Unfortunately, Stamp Duty on any purchases completed prior to the introduction of the Stamp Duty holiday cannot be claimed back.

Want to take advantage of the Stamp Duty holiday and get moving? You’re in the right place. Start your property search with us right here.