The chancellors recent announcement on the 'stamp duty holiday' could benefit you!
Stamp duty is the tax that buyers must pay when purchasing a property and the amount depends on factors such as the price of the property as well as whether you are purchasing as an owner occupier or as a landlord.
Back in July the chancellor made an announcement which changes the amount of stamp duty that buyers will pay on a temporary basis until the end of March 2021.
What if I am buying a property to live in?
If you intend to purchase a property to live in yourself you will benefit from 0% stamp duty tax on all purchases up to the purchase price of £500,000. For example if you are planning to buy a property worth £150,000, previous to this saving you would have had to pay out an extra £500 as a home mover whereas until the 31st March 2021 you will pay nothing.
What if I am buying a property to rent out?
Although those looking to buy a second or non residential property will still have to pay stamp duty there are some cuts to this rate as well dependant on the property price. For example if you are planning to buy a property worth £150,000, previous to this saving you would have had to pay out £5000 extra in stamp duty whereas until the 31st of March you will pay £4500, a saving of £500. Although this amount does not seem like much, it can help with other costs associated with purchasing a property such as conveyancing.
What if I am selling a property but not planning to buy anything else?
Although the stamp duty holiday will not directly benefit you the fact that buyers are saving will mean that they are more likely to pay your asking price and those who were looking to move soon may speed up their plans in order to take advantage. All of this may mean that you get a better price for your property alongside faster offers.