Temporary Stamp Duty Land Tax Holiday

In a bid to revive the stalled property market following Covid-19 restrictions, the Government has announced a change to Stamp Duty rates for anyone purchasing a house from 8 July 2020 until 31 March 2021.

The usual threshold from when stamp duty was payable prior to the announcement on a purchase was £125,000 and this has now increased to £500,000.

This translates to a significant saving for purchases who are able to complete their purchase during this period. Some examples are set out below.

A non-first time buyer replacing their main residence

  • Purchase at £275,000
  • Tax payable before the government announcement
    £3,750
  • Tax payable if completion takes place before 31st March 2021
    £0.00

This makes a saving of £3,750.

Purchase of a second home

  • Purchase at £495,000
  • Tax payable before the government announcement £29,800
  • Tax payable if completion takes place before 31st March £14,850

This is a saving of £14,950

BRM’s Residential Property Department are available throughout this period to take advantage of the reduced stamp duty rates.

For help with a property purchase, please email info@brmlaw.co.uk or telephone 01246 555111.

About the author

Stuart Taphouse is a director and Head of Residential Property at our Chesterfield office. For further advice on this topic or other matters, please contact Stuart by telephone on 01246 564043 or email stuart.taphouse@brmlaw.co.uk

For more advice on this topic or related matters:

stuart.taphouse@brmlaw.co.uk