STAMP DUTIES REDUCED,MASSIVE TAX SAVINGS FOR NEW HOMEOWNERS
This fantastic news was announced by the Chancellor to support the housing market.
These changes will apply to new residential properties bought from July 8th to 31st March 2021.
So, how did the stamp duty land tax affect new homeowners previously?
When a taxpayer purchases land or property (residential or non-residential) in England and Wales they must pay this tax if they go over a certain threshold or affected by certain conditions.
Before the announcement was made the current SDLT threshold was £125,000 for residential properties and £150,000 for non-residential land and properties.
Conditions that determine stamp duties:
- If its first owned property.
- The purpose of use of the property (residential or non-residential).
- Property owned by an individual or corporate body.
- When a freehold property is bought.
- If the property is new or existing leasehold
- When the property is bought through exchange ownership.
- When land or property are transferred/exchanged for payment.
How will these changes affect new homeowners?
Changes made as follow:
| Property or lease premium or transfer value | SDLT rate |
| Property up to £500,000 | 0% |
| Additional duties for property from £500,001 to £925,000 | 5% |
| Extra stamp duties for properties from £925,001 to £1.5 million | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Does this change affect just first-time buyers?
The chancellor has said that these changes would not affect the first-time buyers only.
The additional home buyers will also have their own reduced rates to encourage them.
Conclusion on stamp duties changes .
This is a fantastic time to buy property in the UK due to this tax reduction.
If you would like to know how much tax you will be paying for stamp duty, you can use this calculator.
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