What are the current Rules surrounding stamp Duty?
When the coronavirus pandemic first hit in early 2020, the chancellor announced the ‘Stamp Duty Holiday’ to encourage people to continue purchasing property during the uncertain time. This went down very well with house buyers and the market continued to boom throughout.
After nearly a full year of savings, the Stamp Duty holiday was due to end in March 2021. During the new budget announcement however the Chancellor announced a phased out ending, meaning there are still stamp duty savings to be had!
Prior to the stamp duty holiday, home buyers paid stamp duty on any property over £125,000. During the holiday, this threshold has increased to £500,000 leaving the potential to save tens of thousands of pounds. This will continue to be the case on property purchases that complete before 1st July 2021. From July, the threshold for nil stamp duty is reducing to £250,000 meaning you can still save thousands that would otherwise have gone on stamp duty.
The normal rate of stamp duty will resume from 1st October 2021 giving sellers and buyers only 5 months to get their sales completed.