What is Stamp Duty And What Does the Holiday Mean For Buyers? – March Budget 2021 Update
In England and Northern Ireland, stamp duty is payable when you buy a property or piece of land worth more than £125,000 (unless you’re a first-time buyer) or over £40,000 if it’s for a second home.
In reality what that means is that if you were buying a house for £300,000, you’d pay nothing on the first £125,000, 2% (or £2,500) on the next £125,000 and 5% (or £2,500) on the final £50,000. That would bring your total stamp duty on a £300,000 property to £5,000.
The original announcement meant that properties up to £500,000 would fall within the 0% stamp duty threshold until 31st March 2021, so £0 would be payable for the same £300,000 house. This has now been extended until 30th June 2021 and, for sub-£250k purchases, until September 30th 2021. You can read more here on the holiday.
What’s the Current Situation?
With the original deadline, a house purchase must have been completed by the 31st of March 2021 to take advantage of the holiday.
But, as announced in the budget, this deadline has been extended until 30th June 2021.
It’s important to emphasise that for these savings to be taken into account, the purchase must be completed by this deadline, (with an average timescale for this process currently being a couple of months).
How Can Mortgage Buddy’s Advisors Help?
Part of our process is to check that your advisor is excellent. We make sure that during the whole process, your application is where it should be to keep things moving as quickly and efficiently as possible.
We cannot guarantee that mortgage applications being submitted now will be able to take advantage of the stamp-duty holiday BUT we can try our best to put you in the best position you can be in.