Stamp duty holiday: How much money will you save?

News at Waterfords | 08/07/2020

The Chancellor has announced a temporary stamp duty holiday on the first £500,000 of all property sales in England and Northern Ireland. The stamp duty tax threshold has been temporarily raised until 31st March 2021 to further boost the property market amid the coronavirus crisis.

Even before today’s positive announcement by Rishi Sunak, Waterfords was doing incredibly well post lockdown. We have a wonderfully diverse range of properties for sale throughout Surrey, Hampshire and Berkshire from perfect first-time purchases to luxurious residences. However, any further enhancements to the property market and to buyers who may have been put off moving during the pandemic are most welcome.

What does the stamp duty holiday mean for me?

Previously, you would have paid stamp duty on homes sold for at least £125,000, or if you were a first-time buyer, on properties sold for more than £300,000. However, this is now been raised to £500,000.

This means that nine out of ten people buying a main home between now and the end of March will pay absolutely no stamp duty at all, and the average stamp duty bill will fall by £4,500.

When does the stamp duty holiday come into effect?

Anyone completing on a main residence costing up to £500,000 between 8 July and 31 March will not pay any stamp duty. The move is aimed at helping buyers who have taken a financial hit because of the coronavirus crisis.

Does the stamp duty holiday benefit me if I’m buying a property over £500,000?

Yes, it will still benefit you! More expensive properties will only be taxed on their value above that amount. This will save buyers as much as £15,000 if they are buying a property of £500,000 or more.

How much stamp duty will I pay now?

If you purchase a residential property between 8 July 2020 to 31 March 2021, you only start to pay stamp duty on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

You can use the table from HM Revenue and Customs to work out the stamp duty due:

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates set out above. Find out exactly how much stamp duty you will pay with the government’s stamp duty calculator.

Can I benefit from the stamp duty holiday if I’ve already exchanged on a property?

Stamp duty is payable upon completion, so if you've exchanged contracts and are currently waiting for completion you will be able to benefit from the changes to stamp duty.

Can I benefit from the stamp duty holiday if I’ve already completed on a purchase?

The holiday applies from 8 July, which means anyone completing a property purchase before that date will have to pay the full normal stamp duty. 

I now want to move home given the stamp duty changes, how can you help?

From your very first enquiry until the day you move in, Waterfords aim to give you the complete buying service when it comes to your property purchase. Our staff are always at hand, simplifying any complicated terms or procedures that you need help understanding.

Let us know what you are looking for so we can match your preferences with a list of homes for sale in the region. We often successfully sell properties before they are even marketed on our website. Registering your details gives you more opportunities to find your dream home. 

Use our property search function and input your preferences to find your dream home in your ideal location. We also offer a comprehensive valuation service for your current home, which accurately prices your house or flat and ensures that it is ready for the market. 

Try our instant online valuation tool to see how much your home is worth

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