Stamp Duty Savings Extended
Stamp duty has been one of the hottest topics in property over the course of 2020 and 2021, as the Coronavirus pandemic has seen the government introduce some radical discounts and changes to the way land tax works. Now as the end of lockdown is finally in sight, we’re taking the time to recap everything you need to know about the current status of stamp duty land tax fees.
Stamp Duty Thresholds
There has always been a threshold at which stamp duty starts to apply, so there have always been some properties where no stamp duty is owed. At the moment, the current stamp duty threshold is £500,000 for residential properties. For non-residential properties the threshold is £150,000. Be warned that this changes on the 1st
July 2021 though, so you don’t have long left to take advantage of this increased threshold!
After the 1st
July 2021, until September 30th
2021 the stamp duty thresholds will be £150,000 for non-residential land and properties and £250,000 for residential properties.
After that it all changes again on October 1st
2021; to £125,000 for residential properties and £150,000 for non-residential land and properties. This brings the thresholds back in line with what they were before 8 July 2020.
Stamp Duty Discounts & Reliefs
In some cases, you may be eligible for a discount or relief on your stamp duty fees. At the moment, you are eligible if you, and anyone else you are buying with are first time buyers, if the purchase price of the property is £500,000 or less and you are also eligible for a stamp duty discount if you bought your first home before 8th
How Stamp Duty is Calculated
How much stamp duty you actually pay depends on the stamp duty threshold the property you’re buying falls in to, your edibility for discounts and reliefs and the use of the property. This can all get a bit complicated so the best way to check how much stamp duty you might owe on a new home is to use the Government’s stamp duty land tax calculator
The payment is due with 14 days of completion of your property sale, so you need to make sure you have these funds available in addition to any deposits and legal fees you may also need to pay. Typically, the solicitor or conveyancer handling your property sale will take care of paying this tax for you and claiming any relevant discounts and reliefs.
For even more information on Stamp Duty, please visit the Government website.