Moving house is now cheaper than ever before, thanks to a Stamp Duty holiday on homes up to £500,000 in England – helping you save thousands on the cost of your new home.
Buyers will now pay zero Stamp Duty on properties under £500,000 – meaning it’s cheaper than ever to move home.
When buying properties in England and Northern Ireland a tax is applied called Stamp Duty Land Tax (in Scotland this is called Land and Buildings Transaction Tax and in Wales is called Land Transaction Tax). The amount paid to the government is dependent on both your location and the price of the property
The Stamp Duty holiday will save buyers in England and Northern Ireland an average £4,500 per property and is available on all purchases completed until 31st March 2021.
Stamp Duty is a tax which buyers pay when purchasing residential property in England and Northern Ireland; it is calculated based on the purchase price and is paid on the day of completion.
You can pay directly to HMRC using an SDLT form, or if you’re using a solicitor they can handle this for you.
Thanks to a recent Government announcement, there will now be ZERO Stamp Duty on any house purchased for under £500,000, meaning it’s cheaper than ever to move home.
This threshold is only applicable when buying a home that’s going to be your primary residence, there are however benefits for second homeowners who will
pay just 3% Stamp Duty on a property up to the value of £500,000, rising to 8% over that amount.
HMRC’s Stamp Duty Land Tax calculator is a good place to start when working out what you’ll need to pay.
That’s really dependent on the cost of the house you’re purchasing, but it’s a definitely a generous saving.
Before this announcement, Stamp Duty was applied to all purchases on houses over £125,000, meaning that most people had to pay.
Under the old rules, if you were buying a £250,000 house, you wouldn't have paid Stamp Duty on the first £125,000, however you would have paid 2% of the remaining £125,000. That would be a cost of £2,500.
Now, if you buy the same house before 31st March 2021 you won’t have to pay any Stamp Duty, making for a huge saving.
There’ll be no Stamp Duty to be paid on any purchases completed by 31st March 2021.
Stamp Duty is only payable on completion, so if you’ve only exchanged on a property then yes, you will benefit from the change!
There are still big savings here, as you’ll now only pay Stamp Duty on the portion of the cost over £500,000; starting at 5%.
Under the old rules, if you were buying a home costing £550,000 you would have paid in excess of £20,000 Stamp Duty; it would be just £2,500 under the current rules.