Stamp Duty Holiday - Make the move before it ends

LAURUS LIFE | Finance

Stamp Duty Holiday - Make the move before it ends

LAURUS LIFE | Finance

Make sure you don’t miss out on the savings offered by the Stamp Duty Holiday

——

Last summer, in a bid to help the housing market get back on track after the initial disruption of the Covid-19 pandemic and the first lockdown, Chancellor Rishi Sunak introduced a Stamp Duty Holiday, which comes to an end on 31st March.

Christmas might have only been a few weeks ago, but when it comes to the process of buying a home, the end of March is a deadline that is rapidly appearing on the horizon, so if you want to make the most of the huge savings you can make by purchasing your home before Stamp Duty returns to its normal levels.

Here’s everything you need to know about the Stamp Duty Holiday and what you need to do to take advantage of it.

What is Stamp Duty?

  

Unless you’ve had to pay it in the past, Stamp Duty may well be something you have heard of but hadn’t paid too much attention to. However, it’s much more significant than just an additional cost to be factored into a house purchase.

Stamp duty is a tax that needs to be paid when buying property and while not everyone has to pay it, it can be a large sum of money that you need to find if you haven’t previously budgeted for it, which has a knock-on impact on what you can spend on furniture and other exciting things for your new home.

Prior to the Chancellor’s announcement, the Stamp Duty rates were as follows, with the amount due as a percentage of the property price:

 

  • £0-£125,000: 0%
  • £125,001-£250,000: 2%
  • £250,001-£925,000: 5%
  • £925,001-£1.5m: 10%
  • Over £1.5m: 12%

 

First-time buyers of a home under £300,000 didn’t need to pay Stamp Duty, with purchases of homes under £500,000 only paying a tax of 5% on the amount over £300,000. First time homes of over £500,000 were charged at the standard Stamp Duty rates.

What is Stamp Duty?

  

Unless you’ve had to pay it in the past, Stamp Duty may well be something you have heard of but hadn’t paid too much attention to. However, it’s much more significant than just an additional cost to be factored into a house purchase.

Stamp duty is a tax that needs to be paid when buying property and while not everyone has to pay it, it can be a large sum of money that you need to find if you haven’t previously budgeted for it, which has a knock-on impact on what you can spend on furniture and other exciting things for your new home.

Prior to the Chancellor’s announcement, the Stamp Duty rates were as follows, with the amount due as a percentage of the property price:

 

  • £0-£125,000: 0%
  • £125,001-£250,000: 2%
  • £250,001-£925,000: 5%
  • £925,001-£1.5m: 10%
  • Over £1.5m: 12%

 

First-time buyers of a home under £300,000 didn’t need to pay Stamp Duty, with purchases of homes under £500,000 only paying a tax of 5% on the amount over £300,000. First time homes of over £500,000 were charged at the standard Stamp Duty rates.

What is the Stamp Duty Holiday?

  

The Chancellor’s announcement last July was that anyone buying their main property up until 31st March 2021 will not have to pay Stamp Duty on properties costing up to £500,000, no matter if they are first-time-buyers or not. This meant that huge savings became possible, a big incentive to get the market moving again.

With savings of thousands of pounds, this can be the difference between buying a four-bed home instead of a three-bed home, or at the very least could have a big impact on what you can spend on furnishing your new home.

What is the Stamp Duty Holiday?

  

The Chancellor’s announcement last July was that anyone buying their main property up until 31st March 2021 will not have to pay Stamp Duty on properties costing up to £500,000, no matter if they are first-time-buyers or not. This meant that huge savings became possible, a big incentive to get the market moving again.

With savings of thousands of pounds, this can be the difference between buying a four-bed home instead of a three-bed home, or at the very least could have a big impact on what you can spend on furnishing your new home.

What happens next?

  

Currently there are no plans announced to extend the Stamp Duty Holiday beyond the 31st March. There are petitions and campaigns asking the Government to do so, but with no guarantee of that happening it is best to assume that the deadline is a final one and to act swiftly.

The good news that is if you want to be able to make the most of the Stamp Duty Holiday, buying a new build home is your best option because it removes the delays that can come from being in a chain.

However, time is still of the essence with a flurry of deals needing to be completed before the deadline, and this is expected to put extra pressure on mortgage advisors and conveyancing firms.

If you are looking to sell your home before moving, you may want to try our Move Easy assisted move scheme to get support with expediting that process to ensure you aren’t held up trying to make that sale.

The rewards of completing your home purchase before the Stamp Duty Holiday deadline are great, so why not read our tips for How to speed up the house moving process and get in touch with our Sales Advisors to see how we can help you take advantage before it’s too late?

What happens next?

  

Currently there are no plans announced to extend the Stamp Duty Holiday beyond the 31st March. There are petitions and campaigns asking the Government to do so, but with no guarantee of that happening it is best to assume that the deadline is a final one and to act swiftly.

The good news that is if you want to be able to make the most of the Stamp Duty Holiday, buying a new build home is your best option because it removes the delays that can come from being in a chain.

However, time is still of the essence with a flurry of deals needing to be completed before the deadline, and this is expected to put extra pressure on mortgage advisors and conveyancing firms.

If you are looking to sell your home before moving, you may want to try our Move Easy assisted move scheme to get support with expediting that process to ensure you aren’t held up trying to make that sale.

The rewards of completing your home purchase before the Stamp Duty Holiday deadline are great, so why not read our tips for How to speed up the house moving process and get in touch with our Sales Advisors to see how we can help you take advantage before it’s too late?

Looking for a new home?

  

Discover our latest developments in:

Manchester
Cheshire
Lancashire
Manchester
Cheshire
Lancashire

Copyright © 2021 Laurus Homes THT Developments Ltd.  Registered in England and Wales: no. 9201999

Connect with us
 
Copyright © 2021 Laurus Homes THT Developments Ltd.  Registered in England and Wales: no. 9201999