Stamp Duty Holiday

Are you looking to take advantage of the Stamp Duty Holiday?

The stamp duty holiday was annouced on the 8th July 2020 as a temporary measure to kickstart the UK property market that had been on hold due to the Covd pandemic.

The main benefit of this measure is that it means that anyone buying a home as a main residence up to the value of £500,000 will not have to pay stamp duty land tax. The holiday ends on the 31st March 2020.

Is it too late to take advantage of the Stamp Duty Holiday?

At the time of writing, there are 137 days left to take advantage of this temporary tax deduction. Although that may sound like a long time, it really is not especially if you purchase is dependent on a chain. We are already seeing chains fall apart and clients having to remarket their properties potentially jepordising their purchase. Also, may of those involved in the property buying process are already under pressure with staff working remotely and lending decisions taking longer. Factor in that some areas are estimating searches that are requested may be returned in January 2021 and this highlights the point. If you are looking to take advantage and have not done so already, you probably need to commence your transaction in the coming weeks to maximising your chances of successfully completing before the 31st March 2021.

How has the stamp duty holiday affected UK house prices?

Due to this tax saving, demand for property has increased and it is believed that the result has been an increase in property prices.

Will the stamp duty holiday be extended?

This is currently the question on everyones lips. Ultimately, the goverment could have increased tax revenue by keeping the rates as they were as demand may have increased following the initial lockdown. There are calls for the holiday to be extended but in my opinion it is unlikely to extend much further than the 31st March 2020.

What will happen to UK house prices when the Stamp duty holiday ends?

Property prices are likely to settle down after the 31st March 2021 with some analysts forecasting a decline in property prices.

Does the Stamp Duty Holiday benefit buy to let landlords?

Yes, the tax thresholds do benefit buy to let investors as well but not to the same extent as residential purchashers.

How much is Stamp Duty in the UK?

You can visit the governments stamp duty calculator by clicking here.

I have a question on stamp duty land tax, who should I talk to?

Although this is a tax, your solicitor or conveyancer should be your first port of call for quesitons relating to Stamp Duty. If they do not know the answer, they may refer the enquity to stamp duty tax specialist. Alternatively, you could visit the Governments website by clicking here or calling HMRC on 0300 200 3600. Their lines are open Monday to Friday 8am to 6pm.

In conclusion, if you are looking to take advantage of the Stamp Duty Holiday, you should really consider commencing the process sooner rather than later to ensure that this tempary tax cut an be taken advantage of.

This article is for general information purposes only and does not constitute advice. The author does not accept liability of any errors of omissions. Readers are recommended to take professional advice from a suitably qualified professional regarding their own personal circumstances.