The UK government introduced reduced rates for Stamp Duty Land Tax (SDLT) for residential properties back in July 2020, and the benefit will be available to homebuyers up until 30 September 2021.
For those looking to move into an Anchor retirement property, it could translate into some amazing savings. Find out how below.
What is Stamp Duty?
Stamp Duty is a land tax that is applicable in England and Northern Ireland, and usually applies to residential property purchases over the value of £125,000 and non-residential land and properties over the value of £150,000.
What are the temporary Stamp Duty thresholds?
Up until 30 September 2021, when you purchase a residential property in England or Northern Ireland, you will not be required to pay Stamp Duty on purchases of £250,000 and under. This Stamp Duty ‘holiday’ is open to all types of homebuyers, not just first-time buyers.
If the property you are purchasing has a value higher than £250,000, you will only pay Stamp Duty on the amount above this threshold – representing a significant reduction on the previous SDLT threshold.
The Stamp Duty threshold for residential property purchases changes back to £125,000 on 30 September 2021.
Please be aware that different rules apply if you are purchasing an additional dwelling.
Below outlines how much SDLT due on different property values:
Up to £250,000 - you will pay £0
£250,001-£925,000 - you will pay 5% on anything above £250,000
£925,001–£1.5million - you will pay 10% on anything above £250,000
Over £1.5million - you will pay 12% on anything above £250,000