Stamp Duty Land Tax changes this summer

Stamp Duty update

As we now go into July, we wanted to recap what the interim reduced Stamp Duty rates are about to be, and what this means for new home buyers.

Up until the 30th June 2021, the temporary nil rate band was set at £500,000. This meant any property valued up to £500,000 had £0 to pay in Stamp Duty Land Tax (SDLT).

From the 1st July 2021, up until the 30th September 2021, If you’re a first-time buyer (FTB), you’ll pay no Stamp Duty on properties costing up to £300,000, and will only have to pay a discounted rate of Stamp Duty if your property is priced up to £500,000.

 

For buyers who have previously owned a home, the nil rate value is now decreasing by 50%. This means you’ll pay no Stamp Duty on residential properties costing up to £250,000 or for the first £250,000 on higher-priced properties.

Property purchase price

Stamp Duty Rate

£0 to £250,000

0%

£250,001 to £925,000

5%

£925,001 to £1.5 million

10%

Over £1.5 million

12%

The nil rate band will return to the standard amount of £125,000 on 1st October 2021.

If you’re a Shared Ownership (SO) buyer, you can make a decision, known as an ‘election’ on whether to pay the Stamp Duty in full or in stages. If the share you buy is valued at less than your nil rate value, this means you won’t need pay stamp duty until your reach an 80% share.

It's important to remember, the rate of SDLT which applies to your property depends on the date that you complete your property purchase and not the date that you exchanged contracts.

Your solicitor can provide more detailed advice when you are in the process of buying a home. To begin your new home-buying journey, you can register your interest online or contact our Sales Enquiries Team for further information at 020 3815 2222.

Alternatively, for more information or to work out an estimate towards how much tax you may need to pay, you visit the Gov.UK website SDLT calculator

 

Friday 5 March 2021

As part of the budget statement this week, the government have announced the extension of the Stamp Duty Land Tax holiday on homes up to the value of £500,000 to the end of June. The extension means that home buyers completing a purchase on a main residence costing up to £500,000 before 30 June 2021 will not pay any stamp duty.

From the end of June to the end of September, the nil rate band will be set at £250,000 before returning to its usual level of £125,000 from October 1.

The measure, originally announced as part of a 'plan for jobs' designed help kick-start the economy from the Coronavirus imposed lockdowns could save first-time buyers up to £10,000 and second steppers and other home buyers as much as £15,000, making the cost of buying a home more affordable.

House and keys. Credit: Tierra Mallorca

At NHG, our aim is to help buyers make their move smoothly and quickly but this news will be welcome for those requiring a little extra time to complete their home purchase.

Notting Hill Genesis have appointments available for five days a week across all our developments, make the most of this tax break and take the first steps to making your move by visiting www.nhgsales.com and registering your interest or contact our Sales Enquiries Team for further information at 020 3815 2222

 

Tuesday 12 January 2021

Time is running out to make use of the temporarily extended 'nil rate' of Stamp Duty Land Tax on homes up to the value of £500,000. 

This measure, announced as part of a 'plan for jobs' designed help kick-start the economy from the Coronavirus imposed lockdowns could save first-time buyers up to £10,000 and second steppers and other home buyers as much as £15,000, making the cost of buying a home more affordable.

The nil rate will apply to any sale completion that takes place between 8 July 2020 and 31 March 2021, there are some exceptions (including where the majority of the purchase in financial terms has taken place, where the buyer has already moved in or where the buyer is already collecting rent on the property through a sublease – buyers should check with their solicitor) and will help both buyers to buy and sellers to sell more easily during this difficult time.

Across the housing supply chain, this measure will help stimulate activity, supporting jobs and, for housing associations such as Notting Hill Genesis who use sales income to fund the provision of much needed affordable housing, this short-term measure is also likely to have a positive impact on our ability to meet our social purpose.