Stamp Duty Land Tax Changes
The whole property industry waited with bated breath to hear Rishi Sunak’s Spring statement yesterday.
Lots of speculation suggested a change in Stamp Duty Land Tax but exactly what that change was to be was waited in anticipation!
No Stamp Duty
The relief to many home movers could be heard across the country as the Stamp Duty threshold was raised from £125,000 to £500,000. The Treasury believes nine out of 10 people getting on or moving up the property ladder (or downsizing) this year will pay no stamp duty as a result.
“Whilst demand for house moves has increased since lockdown the number of properties sold May 2020 compared to May 2019 is reduced by half. I see this news as a real opportunity to kick-start the economy since the coronavirus pandemic and will certainly increase the number of transactions we see. E.g. Many retirees who have wanted to downsize into a smaller property more suited to their current needs and lifestyle have been put off due to associated costs which could possibly affect the inheritance of their families. Whereas the volume of transactions at the top end of the market will increase thereby boosting the economy,“ explains Victoria Marshall.
Anyone completing on the main residence costing up to £500,000 between 8 July 2020 and 31 March 2021 will not pay any stamp duty, and more expensive properties will only be taxed on their value above that amount.
Second Property Rules
For those buying second properties, the changes mean they will only pay the 3% surcharge on properties up to £500,000.
Welcoming the assistance, Victoria Marshall Property Solicitor and Head of Conveyancing for Pearson Solicitors and Financial Advisers says, “Whilst these changes are only temporary the housing market needs this boost to keep the current momentum. Those homeowners who have questioned whether it is the right time to move now have the perfect motivation to pursue their next move.”
If you are looking to buy or sell a property and need some advice please do not hesitate to contact our Specialist Conveyancing Team on 0161 785 3500 or email our Head of Conveyancing Victoria.Marshall@pearsonlegal.co.uk or complete on online enquiry form.Subscribe to our newsletter
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.