Soon the COVID-19 pandemic stamp duty relief that the government put in place will come to an end.
Are you in the middle of planning a house purchase to take full advantage of this relief? There’s time left yet!
And also time to book your move to make the most of the stamp duty relief.
What is the Stamp Duty Land Tax rate relief?
Stamp duty is tiered, meaning that you pay different rates on different portions of the property price.
UK Chancellor Rishi Sunak previously announced that homebuyers will not have to pay stamp duty on homes worth up to £500,000. The measure will last until 31 March 2021 in England and Northern Ireland. Stamp Duty Land Tax has been replaced by a Land and Buildings Transaction Tax in Scotland and a Land Transaction Tax in Wales.
The previous 0% stamp duty threshold was £125,000, or £300,000 for first-time buyers of properties worth less than £500,000.
Those buying a property under the £500,000 threshold in England and Northern Ireland will now pay nothing in stamp duty.
And in Scotland homebuyers don’t need to pay Land and Buildings Transaction Tax on the first £250,000. The same goes for Wales, where homebuyers don’t need to pay Land Transaction Tax on the first £250,000.
According to HMRC figures, in the 2018-19 tax year, there were 1,036,000 property transactions, with £8.370m paid in stamp duty.
Residential property rates
You usually pay Stamp Duty Land Tax (SDLT) on increasing portions of the property price when you buy residential property, for example a house or flat. SDLT only applies to properties over a certain value.
The amount you pay depends on:
- when you bought the property
- how much you paid for it
For full and latest residential property stamp duty information, it’s all here on the gov.uk website
Any changes will be updated on the gov.uk website, so be sure to check in time!
Which? website also gives great information and an easy to use calculator, if you are still considering buying a home – or a second home – before the end of March.
What about first-time homebuyers and Stamp Duty rate relief?
Look at the many FAQs on the Which? website that give easy to follow information to some of these questions shown here.
When is Stamp Duty paid?
When buying a property over a certain price, stamp duty is payable to the HMRC 14 days from the date of completion or you may risk a fine. Your solicitor or legal adviser should take care of this for you and ensure you don’t miss the deadline. Some buyers prefer to add on the Stamp Duty tax amount to their mortgage loan, and your mortgage loan advisor can help you with this.
Booking your house move in time to benefit from the remaining months of Stamp Duty rate relief
Can I move house now?
Yes, removals companies are still carefully and safely operating during the current lockdown. And here at Shires Removals we take extra special care and precautions when moving your belongings from one home to another.
Where are you based, and what is your range for removals services?
Our Shires Removals headquarters is in Yorkshire, but we move you to anywhere in the UK, across the channel, and around the world. We have been moving you for over 46 years, and we also have vast, secure storage facilities. Many have taken advantage of this during the pandemic.
Also, during this time of Covid, we have moved a large number of customers to the far north of Scotland to the far south of Cornwall. People are certainly seeking new lifestyles in response to the pandemic, with many opting for larger homes and gardens outside of the city. It’s all about space and life beyond the cityscape – read more about this here.
Booking your move
Book your house move in time for your completion date – have a chat with our expert and friendly team who can assist you with any queries and to make a booking – info@shiresremovals.com
