The property industry has welcomed the latest government announcement; from 8th July 2020 any main residence purchase completion will benefit from stamp duty relief. The stamp duty holiday applies to residential property purchases of up to £500,000 and is granted for a limited period for all purchases completed on or before 31 March 2021.
Buyers should be aware that this relief will not apply to properties that fall within the mixed use category. The holiday only applies to purchases from the 8th July which means that any completions that have happened before that date will have to pay the normal stamp duty amount. For clarity about the tax bands please see the table below which illustrates the new stamp duty rates.
|less than £500k
|£500k to £925k
|£925k to £1.5m
|rest over £1.5m
* An additional property purchased for less than £40k will attract 0% tax. For purchases from £40k to £500k the SDLT rate will be 3% on full purchase price. The SDLT rates above apply to freehold residential purchases in England and Northern Ireland.
The purpose of the relief is to re-ignite the property market which has seen the number of completions during May 2020 drop by 50% nationally and property values fall for the first time in 8 years.
As a comparison, the stamp duty revenue in 2020 saw a substantial drop of 43% compared to the stamp duty revenue collected in April 2019.
Gregory Abrams Davidson Solicitors, who provide residential conveyancing services to clients across the country, reacted positively to the Chancellor’s announcement and anticipate increased demand in the sector.
Chancellor Rishi Sunak said: "The average stamp duty bill will fall by £4,500. And nearly nine out of 10 people buying a main home this year, will pay no stamp duty at all."
The housing market is absolutely critical to stimulating and encouraging the re-growth of the economy which we have seen plummet since March 2020.
In another positive boost, homeowners are also able to take advantage of the Green Home Grants which will be available from September. Vouchers of up to £5,000 will be available for energy-saving home improvements. This is part of the £3billion commitment that the government are making towards cutting emissions.
Oliver Joseph, Head of Property in London comments “At GAD staff have shown an enthusiastic approach to working remotely and thanks to our sophisticated technology system, we have been able to run a seamless operation for our clients. Our offices have now re-opened across Liverpool and London although we are still happy to conduct all matters virtually if preferred. We strive to deliver the best possible service and work hard to achieve your goals.”
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