If you are moving home, here’s a great chance to save some money! Buyers won’t pay stamp duty on the first £500,000 of a property’s price announced by the Chancellor Rishi Sunak.
The threshold where you start paying stamp duty in England and Northern Ireland is usually £125,000, or £300,000 for first-time buyers (if buying a property worth less than £500,000), now temporarily raised to £500,000 until 31 March next year in England..
Stamp duty land tax is paid by the buyer when purchasing a home, the rate payable varies based on the property price and type. Other than the temporary arrangements the buyers purchasing as your main residence will pay:
- No tax dueon properties purchased for up to £125,000
- 2% on the amount between £125,001 and £250,000
- 5%on the amount between £250,001 and £925,000
- 10%on the on the amount between £925,001 and £1,500,000
- 12%on the portion costing more than £1,500,001
So for now, buyers will pay stamp duty when buying a main home worth up to £500,000. For those home costing more than £500,000, the stamp duty bands are unchanged.
The 3% levy paid if you already own a home and are buying an additional property worth more than £40,000 still applies (though you’ll still pay less than you would due to the raised threshold).
The requirement to pay stamp duty is triggered when you complete the purchase of the property. So if contracts have already exchanged been contracts prior to 8 July but not completed, the buyer benefit from the increased thresholds.