Stamp Duty Relief
When purchasing a property you must pay Stamp Duty Land Tax (SDLT) if that property (or land) is over a certain price. The higher the price, then the SDLT increases incrementally. However, the government in a bid to kick start the housing market has changed the levels that stamp duty must be paid. Essentially, taking many people out of actually paying stamp duty at all until the purchase is over £500,000 in England & Northern Ireland. Scotland & Wales have changed their rules too.
In Scotland, it has now been changed to up to £250,000 (known as Land and Buildings Transaction Tax). Wales have taken a slightly different approach and have increased the nil-rate band from £180,000 to £250,000 (known as Land Transaction Tax), but only for main residence purchases & not second homes – not very good news for buy to let investors in Wales!
Any way you look at it, it is indeed good news for homeowners seeking to move or people who may have been struggling to get on the housing market. The government hopes this will enable more people to buy. This welcomed relief of any extra cost burden when purchasing a home will last until 31st March 2021.
Want to know how much Stamp Duty you will pay if you live in England or Northern Ireland when you purchase your home? Click here.