What is Stamp Duty and how much could you save?
In simple terms, Stamp Duty Land Tax (SDLT) is tax you have to pay when you buy a residential property or piece of land in England or Northern Ireland. The tax is paid on the purchase price of your home, not on the amount you borrow via your mortgage.
Under normal circumstances, stamp duty is payable on properties over £125,000, except for first-time buyers who are exempt from stamp duty on home purchases up to £300,000. So normally, the stamp duty bands work like this:
- Nothing on the first £125,000
- 2% between £125,001 and £250,000
- 5% between £250,001 and £925,000
- 10% between £925,001 and £1.5 million
- 12% above £1.5 million
This money is often transferred by your conveyancer when you exchange on your property and must be paid within 14 days of purchasing your home. Unfortunately (or maybe fortunately) we’re not in ‘normal’ circumstances right now, so let’s look at how COVID-19 is affecting home buyers.
Stamp Duty & COVID-19
In response the COVID-19 pandemic, the threshold at which you start paying SDLT has increased, which means that no Stamp Duty needs to be paid on any primary residential property worth up to £500,000 until 31st
March 2021. The good news, you could save up to £15,000 in SDLT on property purchases exceeding the new threshold. The stamp duty bands will now work like this:
Stamp Duty & Second Homes
- Nothing on the first £500,000
- 5% on £500,001 to £925,000
- 10% on £925,001 to £1.5 million
- 12% over £1.5 million
The stamp duty cut has also been extended to second homes and buy-to-let properties. But buy-to-let investors and buyers of second homes will still have to pay a 3% stamp duty surcharge on top of the standard rate. This works out as:
Save thousands in Stamp Duty on a new Chartford Home today!
- 3% up to £500,000
- 8% from £500,001 to £925,000
- 13% from £925,001 to £1.5 million
- 15% over £1.5 million
If you are planning on buying a new home before March 2021, our Stamp Duty savings are ones not to be missed. You could save thousands on your new home, see for yourself!
- The Oxford at Wharfe Green - £11,750 stamp duty saving
- The Bamburgh at Wharfe Green - £6,750 stamp duty saving
- The Richmond at Woodlea - £2,100 stamp duty saving
- The Warwick at Woodlea - £7,500 stamp duty saving
- The Helmsley at Woodlea – from £2,500 stamp duty saving
- The Bamburgh at Woodlea - £3,750 stamp duty saving
So, what are you waiting for? Get in touch with us today and see how we can help you save money on your new home. Call us on 0113 237 2900
or email firstname.lastname@example.org