Temporary Stamp Duty cut announced for some purchases
On 8th August, the Chancellor announced a number of measures to help get the Country back on its feet. This is following the impact of the Covid-19 pandemic. Highly anticipated were the changes he announced to the Stamp Duty Land Tax in England and Northern Ireland. He announced that, from 8th July 2020 until 31st March 2021, people buying their main residential property would not pay Stamp Duty if the purchase price was less than £500,000. Before the Stamp Duty cut, the previous “Nil Rate” was £125,000.
What the Stamp Duty Cut means for House Purchases
“For those looking to buy or sell their house over the next nine months, this will be welcome news. Especially if the value of the property is under £500,000. The hope by the Chancellor is that this Stamp Duty cut will increase confidence in the property market and encourage people to buy and sell property.
“Initial figures suggest that around 90% of people buying a main residence now won’t pay any Stamp Duty tax thanks to this measure. And I have already received phone calls from very happy customers who will now pay less or no tax. It is worth noting that the 3% SDLT surcharge for additional dwellings is still payable during this temporary period of SDLT relief.”
The SDLT calculator provided by HMRC has been updated to reflect the new rates and can be found here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
How Your Mortgage Expert can help
Adam Nanson continues:
“Stamp Duty is one of the expenses most home buyers have to build into their budget. For many, especially for First Time Buyers, one of the biggest barriers to purchase is often affordability. So anything that helps with this is a great thing. If you’re looking to buy your first home or you’re looking to move and you’re not sure how much you can afford, then it can really help to speak to an independent mortgage broker like Your Mortgage Expert.
“We will sit down with you and go through your income, expenditure and clearly go through all the costs associated with purchasing a home to establish your financial situation. We also break down all the jargon, so you understand exactly what is involved with applying for a mortgage. And take away the hassle and administration from you.”
Interested in applying for a mortgage or finding out more about the Stamp Duty cut? Why not speak to us? We don’t charge for the initial consultation, so by speaking to us, you are under no obligation. Your Mortgage Expert is based in Salisbury, Wiltshire, but we can help you no matter where you live in the UK.
Simply call us on 01722 322683. Or complete a contact us form on our website and tell us when to get back in touch with you.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. TenetLime cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.