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This informative article has been wonderfully written by Clare Kelly, a Mortgage and Protection Adviser from Jigsaw Financial Planning. To see their listing, visit the link: https://www.mybump2baby.com/familyservices/jigsaw-financial-planning-ltd/
This article answers all of the questions you might have about stamp duty in a beautifully simplistic way.
1) What is stamp duty?
Stamp Duty Land Tax (SDLT) is a tax that is payable if you buy a property or land over a certain price.
2) Where does the money for stamp duty go?
The stamp duty you pay will go towards the state or government budget. The amount will be used to fund public sectors such as Health, Education and Emergency Services etc.
3) Who pays stamp duty?
It is always the home buyer who pays stamp duty, not the seller.
4) When is the stamp duty holiday extended to?
Up until 30th June 2021, when you purchase a residential property in England or Northern Ireland, you will not be required to pay Stamp Duty on purchases of £500,000 and under. This Stamp Duty ‘holiday’ is open to all types of homebuyers, not just first-time buyers.
If the property you are purchasing has a value higher than £500,000, you will only pay Stamp Duty on the amount above this threshold.
The Stamp Duty threshold for residential property purchases changes to £250,000 on 1 July 2021 before returning to £125,000 on 1 October 2021.
5) Are more people moving during the stamp duty holiday?
If people have struggled to move previously due to associated costs of moving, it could assist them in now being able to move.
6) If I am buying a buy to let property does stamp duty still stand?
Yes, there is currently a 3% surcharge for buying an additional property on the standard stamp duty rates.
If Buy to let investors are currently buying a property up to £500k completing before the 30th June they can save the “standard” stamp duty like everyone else but will still need to pay the 3% surcharge.
7) If I am a first time buyer do I have to pay for stamp duty?
Not if the purchase price is under £500,000 and you buy your home before the 30th of June 2021. After this date the threshold for first time buyers returns to £300,000.