How time flies when you’re saving money! It’s almost a year ago now since Rishi Sunak, Chancellor of the Exchequer, announced he was introducing a temporary cut to Stamp Duty Land Tax (SDLT) in England and Northern Ireland. And on 8th July 2020, he raised the nil-rate threshold from £125,000 to £500,000.
It was a move designed to kick-start the housing market after Covid-19 had put the blocks on it.
The deal meant that first-time buyers and home movers buying a property for £500,000 or less, wouldn’t have to pay any stamp duty. As long as the purchase was all done and dusted before 30th June 2021. A potential saving of up to £15,000.
It did the trick. Thousands of people jumped into action, desperate to get everything signed and sealed by the deadline. But that time is now up.
So what happens now?
If you missed out, don’t worry. There’s still a chance to save yourself a tidy sum of money – because rather than going straight back to the previous stamp duty rates, there will be a staggered return.
From 1st July 2021, the nil-rate band will drop from £500,000 to £250,000. If you want to take advantage of this, you’ll have to complete your purchase by 30th September 2021. That’s not a great deal of time, but it is possible. For any purchases that complete after this date, then the nil-rate band returns to £125,000.
The stamp duty minefield
So that’s simple enough, right? Wrong. Unfortunately, stamp duty is a bit of a complicated beast. How much stamp duty you’ll have to pay depends on a number of different factors. As well as the property purchase price, other factors coming into play. The location, whether you have a UK passport, if you’re a first-time buyer, or whether you’re buying the property to live in, as a holiday home or as an investment, all make a difference. As a guide, you can use the handy calculator here. Or talk to Logical Mortgages and we’ll tell you exactly what you’re dealing with.
As always, if there’s anything else you’d like to know about moving home, mortgages or insurance, Get in Touch.
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