In the latest measures to help buyers get on the property ladder, the Government has announced adjustments to the Stamp Duty Land Tax (Stamp Duty) payable upon completion of a purchase.
What is stamp duty?
Stamp Duty is a tax paid by buyers, which is due within 14 days after completion of the purchase of a property. Stamp Duty is paid in brackets as opposed to being a single percentage payable for the total value of a property. In the past, Stamp Duty has been adjusted to offer benefits to first-time buyers, however the recent changes will benefit all buyers in the market.
What changes have been announced?
The Government have announced a Stamp Duty break commencing on 8th July 2020 and running until 31st March 2021. This break will see the minimum threshold for paying Stamp Duty raised from the current threshold of £125,000 to £500,000.
This new rate applies to all buyers, including those who are purchasing a second home or buy-to-let property. You can use our stamp duty calculator here to work out how your purchase may be affected.
Stamp Duty for properties over £500,000, and for second homes or buy-to-let properties, is still payable, here are the new Stamp Duty boundaries:
What does this mean for buyers?
The new Stamp Duty reduction will enable many buyers to step onto the property ladder without needing to factor in the cost of Stamp Duty, potentially allowing for significant savings.
Here are some examples as to how Stamp Duty will now look with the new changes in place.
- If you were to buy any property up to £500,000 you would pay no Stamp Duty at all.
- If you were to buy a property at £750,000 you would pay £12,500 - 5% of the purchase price above £500,000 and below £925,000.
- If you were to buy a property at £1.5m you would pay £78,750 – 5% of the purchase price above £500,000 and below £925,000, plus 8% of the purchase price above £925,000 and below £1,500,000.01
If you are looking to buy a second property you will still pay the surcharge on the total price of the property, as well as Stamp Duty.
Work out how much Stamp Duty you will need to pay using our stamp duty calculator.
If you are thinking of getting on the property ladder this year and want to take full advantage of the new reduced Stamp Duty rates, take a look below at some beautiful properties we have on offer to suit all budgets and prices ranges.
Ivydale Road, Nunhead, SE15
£450,000 | 2 bedroom flat
Situated on the top floor of a beautiful red brick period conversion, this superb 2 bedroom apartment benefits from a naturally lit living space finished to a stylish standard.
Devonshire Road, Colliers Wood, SW19
£475,000 | 2 bedroom flat
Set on the ground floor, this lovely two bedroom flat is presented in excellent conditions throughout, offers well proportioned rooms and features basement storage and a driveway.
Melrose Avenue, Willesden Green, NW2
£750,000 | 2 bedroom flat
Located within a superb period conversion, this fabulous 2 double bedroom flat features an expansive open plan reception room, bay fronted master bedroom, landscaped garden and off street parking.
Wren Avenue, Gladstone Park, NW2
£1,500,000 | 4 bedroom house
Situated moments from Gladstone Park and boasting stylish and open plan interiors, this beautiful 4 bedroom semi-detached house further benefits from a substantial private garden and a substantial study.
Click here to start your property search today.