What is Stamp Duty?
Stamp Duty is a tax which you might have to pay if you are buying a residential property or piece of land, although this varies slightly across the UK. The changes which are being made to Stamp Duty will only apply to buyers in England and Northern Ireland.
What has changed?
If you’re looking to move from now up until 31st March 2021, then it’s good news! Before the budget you would have had to pay Stamp Duty if your home cost more than £125,000. Now you only need to pay Stamp Duty on homes costing more than £500,000. This is excellent news for anybody looking to buy, and means a number of our homes for sale no longer need Stamp Duty to be paid!
As a result of the Stamp Duty holiday, you can save up to £15,000, and it has been estimated that 9/10 people buying a home this year will pay no Stamp Duty at all.
Buyers buying properties costing more than £500,000 will pay the Stamp Duty rate based on the value of the property over £500,000. To put that into perspective, if a property costs £700,000 the buyer will need to pay 5% Stamp Duty on the remaining £200,000.
The new Stamp Duty rates* are as follows:
Property prices from £0–£500,000 will have a 0% Stamp Duty rate.
Property prices from £500,001–£925,000 will have a 5% Stamp Duty rate.
*Stamp Duty for residential new leasehold sales and transfers are charged differently.
What does this mean for first time buyers?
If you are a first time buyer you will still benefit, even if they didn’t have to pay Stamp Duty previously. More movement among home movers will free up much needed housing stock, and as a result of this there will be more homes available for first time buyers to move into. Additionally, first time buyers previously did not pay Stamp Duty on properties up to £300,000, but this has now increased to £500,000.
Can I still benefit if I have already completed a purchase?
The Stamp Duty holiday applies from 8th July. This means anyone who completed before this date will be subject to the stamp duty payment requirements at that time.
What else can Catalyst New Homes offer to help with your move?
If a Stamp Duty holiday isn’t enough to encourage you to move. We offer a range of incentives** here at Catalyst New Homes to help make your move even easier. Some examples are:
- 5% deposit paid
- Legal fees paid
- Furniture packages
- Integrated appliances and flooring included
So, now there’s even more reason to buy your dream home with Catalyst New Homes. Explore our current developments here, or contact our friendly team if you have any questions, our sales team are on hand to talk you through the process.
*Estimate taken from https://www.bbc.co.uk/news/business-53319433
**These incentives vary from development to development.