In a bid to boost the housing market, the Chancellor of the Exchequer announced a stamp duty holiday from the 8th of July to the 31st March 2021. This tax break is intended to give the housing market, and the economy, a temporary boost, while giving hesitant house buyers an incentive to buy. So are you planning to take advantage of the stamp duty holiday?
What is it?
Stamp Duty Land Tax (SDLT) is payable when you buy a property. There are a number of variables that apply to the calculation, so it is always advisable to use a reputable firm of conveyancing solicitors to understand stamp duty costs. But with the stamp duty holiday, more people can take advantage of this saving, as the threshold has been temporarily increased, from £125,000 to £500,000.
How can you benefit?
The increase to £500,000, has brought other home buyers into the frame, attracted by the stamp duty holiday. Property investors, can also take advantage of the new threshold, with only a 3% surcharge, which still makes it an attractive proposition.
First time buyers were already exempt from stamp duty when purchasing their first property under £300,000 and can take advice about their house purchase before the offer expires, through a reputable firm of conveyancing solicitors. Funds they previously set aside for stamp duty can then be used for home improvements, such as a new kitchen or other purchases.
However, some property buyers are still hesitant to invest, preferring to waive the benefits of the stamp duty holiday, until they feel more confident in the economy, and in investing generally in the housing market or buying a new home.
If you are planning to take up the offer of the stamp duty holiday, you will need to act quickly. Especially if you haven’t marketed you home yet and plan on buying another. Many buyers underestimate the time it takes to sell and complete on a property purchase. Remember this offer is only available until 31st March 2021, so you will need to complete by then.
The stamp duty holiday has given the property market a much needed boost, while helping buyers redirect money, set aside for their stamp duty, to other things. However, it is only a temporary offer, so the general advice is to act sooner rather than later on property purchases.