Do you remember the spring and summer of 2021?
Stamp Duty Land Tax didn’t even exist unless your property was worth over £500,000, the housing market was buoyant with people selling their city homes in droves and exploring working from home life with a scenic view in search of a more relaxed work life balance.
‘If you’re buying your main property up until 30 June 2021, you will not have to pay Stamp Duty on properties costing up to £500,000. This will apply whether you’re a first-time buyer or have previously owned a property.
For properties costing more than £500,000 will pay the Stamp Duty rate based on the value of the property over £500,000.
From 1 July to 30 September 2021, you will not have to pay Stamp Duty on residential properties costing up to £250,000. If you’re a first-time buyer, you will pay no Stamp Duty on properties costing up to £300,000, and a discounted rate, up to £500,000.
From 1 October, you will pay Stamp Duty on properties costing more than £125,000 for residential properties, unless you’re a first-time buyer’*
And then, 2022 hit.
With the energy crisis looming, the war in Ukraine creating an increase in food prices, people being asked to return to the offices and the housing market starting to stall – it’s not been a particularly easy time!
So, the government have released a ‘mini’ budget to help give all new homeowners a boost.
But what does that actually mean to you?
This means that buyers of homes that cost less than £250,000 don’t pay stamp duty. That will comfortably buy you an average terraced home in most places outside of the South East of England.
First time buyers can spend £425,000 – roughly an average flat in London – before paying stamp duty.
Spend £625,000 – perhaps a detached home somewhere like Colingham in Leeds – and you’ll pay nearly £19,000.
At £1m – which could be a detached home in Shenfield at the Essex end of the Elizabeth Line – stamp duty will cost just over £41,000. **
If you want to find out what this can mean to you, use this Stamp Duty calculator and get in touch with our team of legal experts for more information and advice here.
*https://www.moneyadviceservice.org.uk/en/articles/everything-you-need-to-know-about-stamp-duty%23stamp-duty-on-second-homes
** https://www.bbc.co.uk/news/business-53319433