Can I Benefit From The Stamp Duty Holiday?

Stamp Duty Holiday in a nutshell: This refers to Stamp Duty Land Transaction Tax that you usually have to pay upon buying a property, for all properties over £125,000 or £300,000 for first-time buyers. Unfortunately, the housing market was completely halted due to the Coronavirus crisis. Therefore, the Exchequer Chancellor issued a temporary Stamp Duty Holiday on 8 July 2020 in England and Northern Ireland. This has cut the stamp duty rate to 0% for all properties £500,000 or under until 31 March 2021. There is also a tax cut for buyers of additional properties, for example investors who buy-to-let. The new rate starts at 3% up to £500,000. Previously, this 3% rate applied only to the first £125,000, with even higher rates above that.

Summary of Stamp Holiday Rates:

Up to £500,000: 0%
On portion from £500,001 to £925,000: 5%
On portion from £925,001 to £1.5m: 10%
Above £1.5m: 12%
Additional properties rate: 3% up to £500,000

Some Property Selling Tips Regarding Stamp Duty Holiday

This means that as a homeowner, you need to list your home as soon as possible to be able to reap any rewards from the Stamp Duty Holiday. Realistically, your home should already be on the market, but you may still take advantage if you act quickly. But be aware that each house sale may vary due to different factors and circumstances.

So, you may believe you have plenty of time to sell your property before the 31 March 2021 deadline. But consider the fact that, on average, it takes 12 weeks to complete a sale on a property once an offer is accepted. In addition, this figure doesn’t even include the time it takes for you to conduct your own property search, and other common homeowner obstacles. Selling a property is a complicated process to complete on both the buyer and seller side. It involves numerous people including real estate agents, surveyors and solicitors. It can easily take up to six months from time of listing on the market to completion of sale.

Baring all this in mind, you should do yourself a favour while you still can, and give yourself ample time to sell your property and reap the generous savings of the Holiday.

Scotland and Wales are also conducting similar tax cuts, however, their property tax rates are different.

Why Was This Measure Introduced?

There had been several requests earlier on in the year for a Stamp Duty Holiday to bring some much-needed relief to buyers and sellers in the housing market as lockdown restrictions eased. Also, to breathe life back into the property market; an industry that is so crucial to the economy.

The government also hoped that these massive tax cut savings would cause people moving home to get their finances and utilities in order. The real estate market also supports the retail sector as well, since homeowners might want to make home improvements, redecorate, purchase furniture and appliances, etc. This crucial cash injection helps boost the national and global economy.

In addition, the UK property market also had the effects of Brexit to contend with. This caused both activity and price decrease in the three months prior to end of July. In East Anglia and a few other areas, we saw housing prices falling slightly. Surveyor’s predicted that the effects of the Brexit referendum would most likely be short-lived though. And post-Brexit, the property market must continue on.

Marks & Mann

Turn to Marks & Mann Real Estate Agents to guide you along the property process from start to finish. We put our energy into running an independent and vibrant real estate agency, and have our offices located in Ipswich, Martlesham and Stowmarket. Being a family-run estate agent, we are proud of achieving the status of fastest growing and most successful property agent operating in the Ipswich area.

We acknowledge that selling and buying a property is a daunting and overwhelming prospect. However, since our expertise lies in the property field, let us handle that process for you! At Marks & Mann, we are proud of our level of quality and professional customer service. Our comprehensive services offer great value for money as well. Marks & Mann believe our success comes from offering an operation that is genuine and unique – we provide valuable communication, property selling tips, honest advice, and straightforward sales packages to suit every property.