Before the coronavirus pandemic began, home buyers were required to pay Stamp Duty Land Tax for the purchase of any properties with a value over £125K. In an attempt at keeping the property market active and managing the pandemic’s impact on the economy, the government offered a solution – a temporary break for the cost of Stamp Duty Land Tax. But this break or holiday is coming to an end on 30 September 2021.
The SDLT holiday saw a rise in the property market. Purchases soared all through 2020 and 2021. More home buyers applying for mortgages and an increase in property prices. But with SDLT holiday coming to an end in September, the impact on the property market will likely take a U turn. It is anticipated that the number of mortgage applications will likely drop and as a result, we could also see a decline in property prices. This is good news for home buyers, particularly first time buyers considering properties with a value under the SDLT threshold – £125K.
The SDLT holiday period for properties valued below £500K ended on 30 June 2021. Properties of a value below £250K will still be included in the remainder holiday period until 30 September 2021. After this date, standard rates will apply from 1 October 2021. This means that any properties valued at £125 and below are exempt from SDLT. Bear in mind that the SDLT rate is applicable on the date the property is purchased, not on the exchange date. So if a property is purchased before or on the 30 September, then the holiday period still applies.
If you’re buying a property and need clarification on Stamp Duty Land Tax, you can check any updates by following this link Gov.uk. But the government’s website can be a little overwhelming when a home buyer is already overloaded with research and information on property purchase. Property solicitors can help. Conveyancing solicitors are in the position to advice on any aspect relating to conveyancing work. They can also file your SDLT return and pay on your behalf. This amount will be added to the solicitor’s final invoice.
If you’re a first time buyer or buying property that you think might be affected by Stamp Duty Land Tax, please give us a call. We’ll be happy to help. SG
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