Today Chancellor Rishi Sunak has confirmed that the Stamp Duty threshold will be increased to £500,000 until March 31st 2021.
In the South East, the proportion of First Time Buyers paying no stamp duty at all on their purchase will increase from 65.2% to 96.6%.
Our family agency’s honest assessment is that most property types have not seen any decrease since lockdown, despite our close economic relationship with Gatwick airport. Whether this continues towards the end of 2020 and into next year is unknown.
However, today’s announcement is likely to have a very positive impact for all those looking to sell and buy immediately …
Please contact us for a free valuation, and a member of our family will be happy to help.
Additional Advice for Landlords
The Chancellor included buy-to-let landlords – as well as second-home buyers – in the increased threshold, although they still have to pay the 3% additional homes levy.
That means that for purchases up to £500,000 the bill is 3%. The portion from £500,001 to £925,000 is charged at 8% and from £925,001 to £1.5m at 13%. Anything above £1.5m will be payable at 15%.
Those who purchase through limited companies will also be exempt up to £500,000. The cuts not only make property expansion more attractive, but also provide an excellent opportunity for individual BTL landlords to sell their properties into a limited company structure – to take advantage of tax relief on mortgage interest since selling to a limited company would not incur a stamp duty charge. That cost is lower now.