The New Stamp Duty Tax
While the stamp duty holiday, which ended on 30th June, has now unfortunately ended, stamp duty rates are not, contrary to popular belief, returning back to normal in July. Instead, new home buyers can still benefit from a new, reduced rate, until 30th September.
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 are the new rules?
From July, the nil rate band will move to £250,000. This means if you purchase a property between 1st July 2021 and 30th September 2021, you only start to pay stamp duty tax on properties purchased above £250,000.
For example, if you bought a house for £600,000, you would pay nothing on the first £250,000, and then 5 per cent on the remaining £350,000.
First Time Buyers also receive an additional benefit, as from 1st July until 30th September, they will pay zero percent stamp duty on properties which are under £300,000. This increases to five percent for the portion purchased between £300,001 and £500,000
Are Shared Ownership homes eligible for the stamp duty holiday extension?
Yes - the new stamp duty rates apply to Shared Ownership, meaning anyone interested in purchasing a home through Shared Ownership may be able to benefit from lower stamp duty to pay.
The stamp duty changes, 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.
Are you looking for a stylish and modern home through Shared Ownership in London or the South East?
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