Temporary Changes To Stamp Duty – July 2020
Announced earlier today during the Government’s summer economic update, Chancellor Rishi Sunak confirmed that the Stamp Duty Land Tax threshold will be temporarily raised to £500,000 until 31st March 2021 on all property sales in England and Northern Ireland.
Stamp duty, the tax on buying land or properties, is currently charged on properties costing £125,000 or more, except for first time buyers who pay nothing up to £300,000 and then a reduced rate up to £500,000.
The new changes will take effect immediately.
During May, the property market saw a 50% reduction in transactions, it is therefore hoped that this move will boost the property market hit by lockdown.
So, what does this mean for potential buyers and our existing clients? Detailed below we have covered a few of the questions that we are likely to be asked…
Timms are currently acting for me on the house I am purchasing for £225,000, it now doesn’t attract Stamp duty, what do I need to do?
We will make the necessary amendments to our file to reflect the fact you will no longer be required to pay Stamp Duty. Prior to completion we will ask you to sign a Stamp Duty Declaration which will contain all the details about you and your purchase and how much tax, if any, is due. So, it is important that you check through the Declaration before signing it to ensure all the details are correct, in light of the Stamp Duty holiday.
I am a first time buyer, purchasing a house for £195,000, do the changes affect me?
No, first time buyers do not have to pay stamp duty on their purchase up to £300,000 and then a reduced rate up to £500,000.
I am buying a second home for £205,000 do I still have to pay Stamp Duty?
Yes, stamp duty still applies on second homes. The government calculator will help https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
How do I know what Stamp Duty I have to pay on a house over £500,000?
You only start to pay Stamp Duty on the amount that you pay for the property above £500,000. The government have an online calculator https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
How Can Timms Help Me Move House?
We’d be delighted to help you move, for all new matters and conveyancing fee quotations, please feel free to call us on freephone 0800 011 6666 or we do have an online calculator for a free quotation available at https://www.timms-law.com/conveyancing-team/
We do have some Conveyancing Covid-19 Frequently Asked Questions on our website which might help if you are considering buying or selling your home. Alternatively, we can be contacted on freephone 0800 011 6666 or by email at legal@timms-law.com.
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Katie Holmes
July 2020