For England and Northern Ireland, the government has scrapped stamp duty on house purchases of up to £500,000, potentially saving homebuyers thousands of pounds.
Previously stamp duty kicked in at £125,000 (or £300,000 for first time buyers) meaning you can make significant savings if looking at purchasing or moving home this year. These new rates will remain available until 31st March 2021
Stamp Duty: New Rates until 31/03/2021
Examples below of savings that you could make
First time buyers
– Now £0 Stamp duty up to £500k
– Previously it was only £0 up to £300k
– Buying at £500k would now incur £0 stamp duty, where it was £10k previously
Home movers, who are selling their current residential
– Now £0 stamp duty up to £500k
– Previously it was only £0 up to £125k
– Buying at £500k would now incur £0 stamp duty, where it was £15k previously
Home movers retaining existing residential or Buy to Let investors
– Now £0 stamp duty up to £500k, but the 3% additional supplement still applied
– Previously it was £0 up to £125k (3% supplement on the full price though)
– Buying at £500k would now incur £15k stamp duty, where it was £30k previously
This only applies in England and Northern Ireland it should be noted.
Scotland’s equivalent to stamp duty, the Land and Buildings Transaction Tax, is rising from £145,000 to £250,000 until the 31st March 2021.
The Welsh government has announced that its Land Transaction Tax threshold will increase from £180,000 to £250,000 until 31st March 2021.
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