A year ago this month, the Chancellor of the Exchequer announced a temporary cut in stamp duty raising the threshold from £125,000 to £500,000. Having been extended until 30 June, we’re now seeing a gradual return to the original threshold of £125,000, with purchases up to £250,000 precluded from paying stamp duty until 30 September 2021.
So what does that mean for you?
Despite not benefitting from the higher savings of the initial stamp duty holiday when buying a new home as you would have prior to 30 June, there are still big savings to be made as you’ll see below.
|Stamp Duty Band||Normal Rate||Purchasing an Additional Property|
|Up to £250,000||£0||3%*|
|£250,001 – £925,000||5%||8%|
|£925,001 – £1.5 million||10%||13%|
|Over £1.5 million||12%||15%|
*If purchasing an additional property you still pay stamp duty on purchases between £40,001 and £250,000.
And don’t forget, if you’re making your first property purchase you don’t pay stamp duty on properties up to £300,000.
From 1 October, stamp duty will be payable on purchases over £125,000 (excluding first time buyers).
So what are you waiting for? Contact your local agent today to make the most of these savings while they last. And if you’re selling your home, you might want to consider striking while the iron’s hot and get your property listed for sale as soon as possible.