Residential Property – STAMP DUTY HOLIDAY – updated 8th July 2020

Residential Property – STAMP DUTY HOLIDAY – updated 8th July 2020

Solicitors in Shropshire

COVID-19 STAMP DUTY HOLIDAY 

The Chancellor has announced a stamp duty holiday with immediate effect for all sales up to £500,000 in England and Northern Ireland, continuing until 31 March 2021, in order to boost the property market.
What is stamp duty?

Stamp duty is a tax paid by people buying properties, although it varies slightly across the UK.

In England and Northern Ireland buyers pay Stamp Duty Land Tax.

In Scotland it is Land and Buildings Transaction Tax, while in Wales buyers pay Land Transaction Tax.

The amount handed to the government depends on where you are in the UK, the price of the property and whether you’re a first-time buyer.

What are the current rates of stamp duty?

In England and Northern Ireland stamp duty is paid on land or property sold for £125,000 or more.

However, first-time buyers pay no tax up to £300,000 and 5% on any portion between £300,000 and £500,000.

For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m.

Landlords pay an extra 3% of stamp duty when they purchase a buy-to-let property in England and Northern Ireland.

Contact Hatchers on 01743 248545 or 01948 663361 for any house sale or purchase enquiries.