Recently, the government announced temporary changes to Stamp Duty Land Tax (SDLT). In England and Northern Ireland, the limit will be raised from £125,000 to £500,000 until 31st March 2021. Who could benefit from this SDLT holiday?
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
This does not constitute advice and advice should be sought in all instances before acting on it. The Financial Conduct Authority does not regulate tax advice.
If you’re planning to purchase a new home before next April then this ‘stamp duty holiday‘ means you could save up to £15,000 in stamp duty fees. This is particularly good news for certain groups of people and situations.
Who can benefit from the SDLT holiday?
Buy-to-let investors finally get a win with this SDLT holiday because you can use it even if you’re buying a second home or a buy-to-let property. Investors will still be responsible for the existing 3% surcharge that comes with buying a second property, but thanks to the stamp duty holiday, your overall costs will still be lower.
Average home buyers will most likely be the main beneficiaries as the average home in England costs £248,000 according to the Office for National Statistics’ (ONS) most recent UK House Price Index. Purchasing a home for that price means you’ll pay no stamp duty, saving you thousands during the process.
Areas with high property prices will also benefit from these changes as the £500,000 limit is actually quite high in comparison to the average home price. According to the ONS, even the average house in London costs £486,000, which is still under the threshold and means a significant potential saving.
Even first time buyers looking in an expensive area can benefit. This temporary holiday beats the £300,000 threshold they previously benefited from.
Best of all, even if you’re buying a house over £500,000 you can still enjoy the savings. You could save up to £15,000 in stamp duty fees, which could cut a huge chunk out of the cost of buying a home.
How much could you save? Try our SDLT calculator
If you’re looking at properties over the SDLT holiday limit, check out our calculator to determine potential savings. If you decide to move forward with purchasing a home and need advice about next steps or need any tax planning help don’t hesitate to get in touch with us. We’re here to help and happy to work around your schedule.
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