What you need to know
Until 31st March 2021 you can take advantage of the Stamp Duty Holiday, ensuring you pay absolutely no stamp duty on your first home. Saving you up to £15,000, this could make a real difference to the cost of upfront payments. With the average house purchase taking up to 12 weeks, the deadline isn’t too far away, so you may have to act fast if you want to take advantage of this opportunity.
What is the Stamp Duty Holiday?
Ordinarily, like income tax, Stamp Duty Land Tax is a tax paid on the value of your property over a certain threshold. It is calculated under a tiered system as a percentage of the value of the house upon purchasing. However with the new Stamp Duty Holiday, you won’t have to pay a thing as long as you buy your property before the deadline of 31st March 2021.
How much could you save?
On the 8th July, the chancellor announced a temporary Stamp Duty Holiday that cut the rate of Stamp Duty paid on properties between the value of £125,000 and £500,000 to zero. First-time buyers could be saving £15,000 in upfront costs by taking advantage of the holiday before March 2021. With deposits and fees included in your initial payments, these first transactions can be the biggest hurdle for first-time buyers. But with the Stamp Duty Holiday, these initial payments could be significantly reduced.
The rates of Stamp Duty Land Tax will return to their previous costs after March 2021, so putting down your deposit sooner rather than later could mean the difference between £10,000 tax or none at all.
Who is Eligible?
Are you looking for a new home in South East England or London?
Southern Home Ownership showcases a vast variety of bespoke, intricately designed and contemporary new homes for sale under the Shared Ownership scheme. We are dedicated to ensuring first-time buyers don’t compromise on quality and location for price. With homes to suit every family size, budget and preference, you can pick something perfect for you and your future. Whether you are a young professional looking to move to a London apartment or your family are searching for the perfect friendly village community, take a look at what Southern Home Ownership can offer you here.