Stamp Duty – What is it and should I move now?
Chancellor Rishi Sunak’s suspension of stamp duty on the first £500,000 of all property sales in England and Northern Ireland has helped boost house prices reports the BBC news. August 2020 saw the highest monthly price rise in more than 16 years, says Nationwide, they describe the housing market recovery as “unexpectedly rapid”.
Do you understand stamp duty, what has changed and how between now and 31st March 2021 might be your chance to move to a new house while saving money?
Stamp duty is a tax paid when buying properties in England and Northern Ireland. The amount paid to the government depends on where you are in the UK and the price of your property.
What has changed? The government has temporarily increased the stamp duty threshold to £500,000 for property sales in England and Northern Ireland, until 31 March 2021. Rishi Sunak has suggested nearly nine out of 10 people buying a main home this year will pay no stamp duty at all.
How much stamp duty will I pay now? If the property purchased is your main home, you will not pay any stamp duty on it at all if it costs £500,000 or less. On a £500,000 this means you could be saving up to £15,000.
This useful table from HM revenue and customs shows old and new rates of stamp duty. They say stamp duty is the hidden cost of moving to a new house, but not for now! Now is the time to consider moving if the time is right for you.