Stamp duty holiday – What is the rush?
As you are aware, we are in the middle of a pandemic. Life as we know it has changed but here at Versus Law, we are working hard to keep the conveyancing team up and running to get your purchases completed.
Homebuyers who want to take advantage of the stamp duty holiday will need to act quickly as high demand for mortgages and coronavirus restrictions mean that the process which can take some time could be subject to further delays depending on government ruling and other factors related to the home buyer chain. Simply put if you want to take advantage of the stamp duty holiday you need to start the conveyancing process before the end of December 2020.
Rishi Sunak’s stamp duty holiday has seen stamp duty land tax (SDLT), often known simply as stamp duty, cancelled for property purchases up to half a million pounds. You are only eligible to claim for this if your property purchase completes by 31st March 2021. The holiday does not apply to second homes, holiday homes or buy to let properties. The maximum saving if you were to buy a property for £500,000 is £15,000.
See below for our easy to follow table on the tax band changes from 8th July 2020 to 31st March 2021.
NEW STAMP DUTY HOLIDAY RATES TABLE
|Property Purchase Price||Stamp Duty Rate|
|£0 to £500,000||0%|
|£501,000 to £925,000||5%|
|£925,000 to £1.5 million||10%|
The stamp duty bands will remain otherwise unchanged. So, for the duration of the holiday, there will be no initial stamp duty band. Instead, stamp duty will jump straight to 5% for properties costing from £500,000 to £925,000 and then to 10% for properties up to £1.5 million.
At Versus Law we support the call for an extension to allow more of our customers to benefit from the savings however as there is no guarantee that this will happen now is the time to get in touch and start your journey to purchasing your new home. Click here to use our handy conveyancing calculator for a free no obligation quote and remember the earlier you start the process the better your chances of completing your purchase on time.