Stamp Duty Holiday Extension
Earlier this month it was announced that the stamp duty holiday has been extended for a further three months, and will now end on 30th June 2021.
What is stamp duty?
Stamp duty is the tax levied on property purchases. The tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage. It is calculated on the part of the property purchase price falling within each band.
What does the extension mean?
The extension means anyone completing a purchase on a property costing up to £500,000 before 30th June 2021, will not pay any stamp duty tax. This means that you could potentially save up to £10,000 in stamp duty if you purchase a home for £500,000.
When the holiday ends on 30th June, the nil rate band, which is a tax threshold, will be set at £250,000, - double its standard level - until the end of September. Stamp duty will then return back to the normal threshold after September and will be paid on any property sold for more than £125,000.
Are Shared Ownership homes eligible for the stamp duty holiday extension?
Yes - the stamp duty holiday applies to Shared Ownership, meaning anyone interested in purchasing a home through Shared Ownership may be able to benefit from zero stamp duty to pay.
The stamp duty holiday, combined with the reduced deposit required for a Shared Ownership home, makes buying a part-buy part-rent home even more attractive for those wanting to get on the property ladder.
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