Exciting news has now been unveiled regarding Stamp Duty Land Tax, with the chance for many buyers to benefit from reduced rates and ultimately more cash to stay in the back pocket!
From 8th July 2020 until 31st March 2021, the Stamp Duty rulebook is having a few pages pulled out by providing the opportunity for residential purchases up to a value of £500,000 to benefit from 0% Stamp Duty Land Tax. This potentially means savings of up to £15,000 in tax!
Any residential purchases over £500,000 will utilise the same tax scale system that we have been using for the last few years. This would mean a £600,000 residential purchase today may attract Stamp Duty Land Tax of approximately £5,000 compared to a potential tax liability of £20,000 if completion took place prior to the new rules!
If you are purchasing a second home, a buy to let property or are buying but not yet selling your current home, you will still be able to benefit from a reduction in Stamp Duty Land Tax, As an example, an individual buying a second home for £500,000 that completed on 1st July 2020 would have potentially paid £30,000 in tax. If the same transaction were to take place today, the payment would be £13,800, which is a fantastic saving in the current climate!
It is hoped that these temporary changes to Stamp Duty Land Tax will kick start the residential market and the wider economy once again, whilst leaving some extra funds in clients pockets to buy decorating supplies once the paint tins are actually back on the shelves in shops!
Please contact our Residential Property department today to discuss any queries you may have, or make use of our free online quote system.
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