Are you on the hunt for a new property? With the stamp duty holiday in place, now has never been a better time to get ahead of the game. Discover what stamp duty is and what the stamp duty holiday could mean for you.
Stamp duty is payable on the purchase of property, typically within two weeks of completion of the transaction. Stamp duty is usually the largest cost associated with a house purchase, which can cost home buyers more than the fees payable to solicitors, mortgage advisors and valuers combined.
How does stamp duty work?
Stamp duty is a form of tax that is paid when you purchase property or land above the threshold in England and Northern Ireland, which is currently £125,000, with the exception of first-time buyers if the property is under £300,000.
What is the stamp duty holiday?
Announced in July, the stamp duty holiday has already helped countless home-buyers, saving as much as £15,000. Currently, the stamp duty holiday threshold stands at £500,000.
These are the current rates under the stamp duty holiday period before 31st March 2021:
- Up to £500,000: 0%
- On the portion from £500,001 to £925,000: 5%
- On the portion from £925,001 to £1.5m: 10%
- Above £1.5m: 12%
When do I pay stamp duty?
If you are applicable to pay stamp duty, the crucial thing to understand is that you have 14 days from the completion of contracts signed, dated and getting your keys to pay the stamp duty. If the transaction is not completed during this time you could face fines and possibly interest payments.
In terms of how you pay, usually, your solicitor or conveyancer will handle the stamp duty return for you, but it’s also your responsibility to ensure it is paid on time.
What happens after the stamp duty holiday?
If you complete on a property on or after the 1st of April 2021, the threshold will return to normal, meaning it will increase again. It is however too early to say whether the Government will extend the stamp duty holiday or introduce any more incentives.
Unsure on how much stamp duty you would have to pay and how much you can save? Check out the new stamp duty calculator
Are you looking to sell or buy a property in Colchester, or the surrounding areas, with no delays before the stamp duty holiday? Our team of property experts across Essex and Suffolk will provide a quality-focused service, no matter what stage you are at with your property journey. Get in touch today.