Why the Stamp Duty Holiday is a good time to consider moving

September 29th 2020
By: Embrace Financial Services
Why the Stamp Duty Holiday is a good time to consider moving

Stamp Duty Land Tax in England and Northern Ireland (SDLT)

On the 8th July 2020 the Government announced a stamp duty holiday to support the economy through the COVID-19 pandemic. The stamp duty holiday lasts until the 31st March 2021.

If you are buying a property in Scotland you will pay Land and Buildings Transaction Tax (LBTT), here the tax holiday is also until the 31 March 2020. More details here

If you are buying a property in Wales you will pay Land Transaction Tax (LTT). Further details can be found here

But what does this really mean?

If you buy a residential property in England and Northern Ireland as your primary residence up to the value of £500,000 you will pay £0 in stamp duty. Before the stamp duty holiday was announced then you would have paid £15,000! (not as first time buyer as different rates apply, see below)

How much could I now save?

The tables below show some examples of how much you could now save in stamp duty. If you know the exact price of the property you would like to buy try our online stamp duty calculator. But remember you need to act now to take advantage of the savings.

E.g. Buying a property as your primary residence

Property priceStamp duty land tax rate
£500,000Pre 8 July 2020 = £15,000

Post 8 July 2020 = £0
£400,000Pre 8 July 2020 = £10,000

Post 8 July 2020 = £0
£300,000Pre 8 July 2020 = £5,000

Post 8 July 2020 = £0
£200,000Pre 8 July 2020 = £1,500

Post 8 July 2020 = £0

 

E.g. Buying a property as a first time buyer and as a primary residence

Property priceStamp duty land tax rate
£500,000Pre 8 July 2020 = £10,000

Post 8 July 2020 = £0
£400,000Pre 8 July 2020 = £5,000

Post 8 July 2020 = £0
£300,000Pre 8 July 2020 = £0

Post 8 July 2020 = £0
£200,000Pre 8 July 2020 = £0

Post 8 July 2020 = £0

 

E.g. Buying a property as a Buy-to-Let/additional property

Property priceStamp duty land tax rate
£500,000Pre 8 July 2020 = £30,000

Post 8 July 2020 = £15,000
£400,000Pre 8 July 2020 = £22,000

Post 8 July 2020 = £12,000
£300,000Pre 8 July 2020 = £14,000

Post 8 July 2020 = £9,000
£200,000Pre 8 July 2020 = £7,500

Post 8 July 2020 = £6,000

 

Double whammy

On top of this Stamp Duty saving is the fact that interest rates are at an all-time low which, on top of the Stamp Duty saving could also mean that you can now afford a bigger deposit, a better mortgage rate and/or release cashflow to be able to carry out renovations on a new property.

Act now

Although 31st March sounds a long way off, it takes weeks for a property transaction to complete and with the March deadline looming, the Christmas holiday period and the current pandemic changing how we behave on a daily basis, in reality, time is running out. Also the market is very busy at the moment (which is excellent news in terms of finding buyers), however this does mean that there is a backlog of legal work potential slowing down the whole process. It really is the right time to act now.

One excellent first step would be to book a free, no obligation consultation with one of our Embrace Financial Services advisers. We have

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