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
- Tax payable if completion takes place before 31st March 2021
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 firstname.lastname@example.org or telephone 01246 555111.