Changes in stamp duty explained: How much money could you save?
THE STAMP DUTY HOLIDAY SAVED THOUSANDS OF PEOPLE THOUSANDS OF PEOPLE THOUSANDS OF PEOPLE THOUSANDS OF PEOPLE THOUSANDS OF PEOPLE THOUSANDS OF PEOPLE THOUS So, what are the latest adjustments to Stamp Duty? How much more money could you save?
Stamp Duty, also known as Stamp Duty Land Tax, is a tax on property or land purchased in England and Northern Ireland that is a necessary evil when purchasing a home. Homeowners must pay if their purchase costs more than a particular amount, although the threshold was raised last year by Chancellor Rishi Sunak to help the property market.
This so-called Stamp Duty Holiday came to an end on June 30, but Mr Sunak has extended it until September 30 with a lower threshold of £250,000.
With a myriad of forms to fill out, moving house can be difficult at the best of times – but Stamp Duty doesn’t have to be.
Jess Mitchell, office manager at Nottinghamshire estate company Gascoines, tells This website everything you need to know about the new restrictions and how much you could save.
“Following the recent government announcement on stamp duty, we’ve seen an inflow of homeowners looking to review their properties, but many are concerned how the new changes will affect them or whether they will be able to complete transactions on time,” Ms Mitchell said.
“If you buy a property for £250,000 or less between July 1 and September 30, you won’t have to pay stamp duty until October 1, when you’ll have to pay 2% of the property’s worth.
“Properties worth more than £250,000 and £925,000 are taxed at 5% and 10%, respectively.
“It’s also worth noting that houses with additional residences, such as second homes or buy-to-let properties, are subject to a three percent surcharge on top of ordinary rates.”
First-time purchasers will pay zero percent stamp duty on houses under £300,000 from July 1.
If the property is worth between £300,000 and £500,000, the rate rises to 5%; however, if the property is worth more than £500,000, no reduction is available and ordinary rates apply.
“It’s good to see more assistance being provided to first-time buyers,” Ms Mitchell remarked.
“Getting on the property ladder may be quite challenging, and we hope that this government assistance will help.”Brinkwire Summary News”.