Everything You Need to Know About Stamp Duty in 2020

Everything You Need to Know About Stamp Duty in 2020

Stamp duty, also Stamp Duty Land Tax (SDTL) is a big part of buying a home. If you’re thinking about buying property or if you want to sell your house fast, you need to understand stamp duty and how the recent changes – the stamp duty holiday might impact your move and your finances for the better. Simply put, if you’re thinking about selling your home – now is the time to get it on the market. If you’re thinking about buying your first home, buying-to-let or downsizing then now is the time to act. Get your mortgage approved as soon as you can, or for a fast house sale, get your property on the market now. Thanks to the stamp duty holiday, more on this below, it’s likely that there will be a surge of fast house buyers.

What is Stamp Duty on property?

Stamp duty is one of the biggest expenses you face when you buy a house. It’s a tax that you pay when you buy property or land. Stamp duty applies across the UK and whilst the calculations, schemes and terminology vary across the UK – the principle is the same. Stamp duty on property varies depending on the property buyers circumstances. There are a few factors that might impact your stamp duty contribution:  Purpose of the property  Value of the property  The Type of buyer that you are (eg. first time buyer, landlord etc.) You pay stamp duty directly to HMRC and they must receive the payment within 14 days of completion. It’s easy to pay – you simply fill out a form and send it to HMRC. Your solicitor will likely support you with this or even manage it entirely for you.

Facts about Stamp Duty on Property

 You do not pay VAT on stamp duty  It is not tax deductible  The buyer pays stamp duty on property, not the seller. Sellers may have to pay Capital Gains Tax (CGT), but never stamp duty.  Stamp duty exemption areas do not exist – exceptions are qualified based on property value and individual circumstances.

What is the Stamp Duty Holiday (SDLT Holiday)?

Rishi Sunak has raised the threshold for stamp duty to £500,000 until March 2021. This means that you will not have to pay stamp duty on property for any purchase up to the value of £500,000 and that includes – buy to let, second homes, those of you who are first time buyers, and the standard home mover. You can use stamp duty calculators to see exactly how much stamp duty you might have to pay on your chosen property. It is thought that by increasing the stamp duty threshold jobs in the construction sector are more likely to be saved and homeowners will be encouraged to move and invest their homes. For property buyers who were looking to buy a home to the value of £500,000 could be saving up to £15,000 by going for a fast house sale now. You can see how the stamp duty holiday might encourage fast house buyers to act now, so you can sell your house fast.

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By MikeL | July 24th, 2020 | | Leave a comment

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