Fantastic news for everyone hoping to buy a new home! The government has just announced a Stamp Duty Holiday, which could save buyers in England and Northern Ireland thousands of pounds if they complete on their property before 31 March 2021.
What is Stamp Duty?
Stamp Duty Land Tax is a tax that homebuyers must pay when they purchase a property. This is usually paid upon completion, and can be up to 10% of the overall cost of your home.
Many people don’t know that you may have to pay Stamp Duty on a Shared Ownership home, but the rules are slightly different for this scheme. Find out more >
What is the Stamp Duty Holiday?
The government announced the Stamp Duty Holiday on 8 July, explaining that the lower Stamp Duty threshold has temporarily been increased to £500,000. This applies to all homes sold in England and Northern Ireland. You may still benefit from the Stamp Duty Holiday if the property you’re buying is between £500,000 and £600,000.
When is the Stamp Duty Holiday?
To benefit from the Stamp Duty Holiday, you will need to complete on your property between now and 31 March 2021.
What does it mean for buyers of Shared Ownership properties?
As a Shared Ownership buyer, you would ordinarily choose to pay your Stamp Duty either based upon the full-market value of your home, or just on the share you’re purchasing. Let’s take an example:
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Use the Stamp Duty Calculator, and speak to your Solicitor for full details on how the Stamp Duty Holiday will affect you.