Stamp Duty Changes From 8th July – Hazel Warner

STAMP DUTY CHANGES WITH EFFECT FROM OF 8TH JULY 2020

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Due to the recent Stamp Duty cuts announced by the Chancellor, buyers can now benefit from the stamp duty relief for purchases up to the value of £500k. This applies to all buyers of residential properties and will remain in place until 31st March 2021. Basically, the higher the purchase price, the more money you will save. The Government states that this will mean 9 ou of 10 people buying a home this year will not need to pay any Stamp Duty at all.

 

This is a huge boost for the housing market all round. First time buyers can use any stamp duty they have set aside towards improving their first home or buying furniture, white goods etc. Alternatively, buyers may wish to use the extra savings by purchasing a higher value property which they would have otherwise been unable to afford. The new rates are shown on the table below:-

 

Portion of Property Price

Stamp Duty Rate in %

Up to £500,000.00

Zero

£500,001.00 to £925,000.00

5%

£925,001.00 to £1.5million

10%

 

If you are purchasing an investment property, or second home, you will still be required to pay the 3% Stamp Duty surcharge, but this will be based on the new temporary rates, which are shown on the table below:-

 

Portion of Property Price

Stamp Duty Rate in %

Up to £500,000.00

3%

£500,001.00 to £925,000.00

8%

£925,001.00 to £1.5million

13%